How roof coverage works on Texas home policies

Replacement cost vs actual cash value

Replacement cost coverage pays to repair or replace at current prices. Actual cash value (ACV) pays replacement cost minus depreciation for age and wear. TDI's example: a 10-year-old roof that costs $10,000 to replace. With replacement cost and a $2,000 deductible, the company pays $8,000. At ACV, the roof might be valued at $7,000, so after the deductible the company pays $5,000, and you cover $5,000 instead of $2,000.

Watch for roof changes at renewal

TDI's renewal checklist starts with the roof: when a roof reaches a certain age, the company might switch it to ACV, and if it's in poor condition, coverage might be dropped. TDI says your company should tell you when it changes your coverage, and that you should check the last pages of a renewal for new endorsements or exclusions.

Texas law requires insurers to give written notice of material changes, including reduced coverage, at least 30 days before renewal, in plain language and in a conspicuous place in the renewal notice (Insurance Code Section 551.1055). Read that notice; it's the warning.

Check the roof details on your policy

TDI recommends confirming that your policy lists the correct roof age, construction type and other house details, since companies use them to set your price. A roof listed as older than it is could push you into ACV or a higher rate. Keep the invoice and permit from your last roof replacement.

Insurers inspect roofs when you apply and may charge more or decline based on what they see. TDI's maintenance list: trim overhanging limbs, check for missing shingles after storms, secure chimney bricks, clean gutters and have the roof inspected every few years.

How a roof claim is paid

With replacement cost coverage, TDI says the company usually pays in two checks: the first for the estimate minus depreciation and your deductible, the second for the withheld depreciation after you start or finish repairs. You usually must complete repairs within a set period, so ask your adjuster how long you have.

A roof that is simply old isn't a claim. TDI notes insurers won't pay for a new roof just because it's worn out; the damage has to come from a covered event like hail, wind or a falling tree.

Wind-resistant roofs and discounts

TDI suggests considering materials less likely to be damaged by wind, hail or fire when you replace a roof, and lists an impact-resistant roof among common discounts. Ask your agent which products your insurer credits before you choose a roofer's bid.

On the coast: TWIA roof rules

A TWIA policy may include replacement cost coverage for one- and two-family homes, and pays full replacement cost only if the dwelling is insured to at least 80% of replacement cost or the TWIA maximum (Insurance Code Section 2210.207). The commissioner may also authorize TWIA to cover roof coverings at ACV under conditions set by rule. Replacing a roof in the TWIA area also generally requires a windstorm inspection and certificate of compliance.

If the insurer says it's wear and tear

Disputes over roofs usually fall into two kinds. If the insurer agrees the storm caused damage but you disagree about how much, TDI says appraisal is the tool: each side hires an appraiser and an umpire settles differences. If the insurer says the damage isn't covered at all, for example because it's age-related, appraisal doesn't apply; you can send more evidence, file a written complaint with TDI, or go to court.

Photos of your roof taken before storm season, plus the installation date, are often the best evidence of what a storm actually did.

What to ask before you buy or renew

• Is my roof covered at replacement cost or actual cash value, and at what age would that change?
• Is there a separate wind and hail deductible, and what is it in dollars?
• Does the policy exclude cosmetic hail damage (dents that don't cause leaks)? Read the exact wording.
• What roof age and material does the policy list, and are they right?
• Which roofing products earn a discount?