In recent years, Ohio has experienced an increase in severe weather events, particularly wind and hail storms. As a result, insurance carriers have been making significant changes to how they cover roof damage. Many homeowners are noticing shifts in their policies, including stricter guidelines for roof replacement coverage, increased wind and hail deductibles, and higher premiums. These changes can be confusing and concerning, so we want to help clarify what they mean for you and your home.
Why Are Insurance Companies Changing Roof Coverage?
Insurance carriers base their policies on risk, and with the rise in wind and hail claims in Ohio, they are adjusting their coverage to manage their financial exposure. Roofing claims have become more frequent and costly, leading insurers to take measures such as:
· Changing how they value older roofs – Many insurers are no longer offering replacement cost coverage for roofs over 15 years old. In some cases, roofs as young as 10 or 12 years old may also be subject to reduced coverage.
· Implementing higher wind and hail deductibles – Policyholders are seeing higher deductibles specifically for wind and hail damage, meaning they will pay more out of pocket before insurance coverage applies.
· Raising premiums – With increased claim frequency, premiums have risen to help offset costs.
These changes affect how claims are handled and how much you may have to pay out of pocket after a loss.
How Roof Age Affects Coverage
A common misconception is that homeowners’ insurance will always pay the full cost to replace a damaged roof. However, many policies now apply actual cash value (ACV) settlements instead of replacement cost value (RCV) for older roofs.
· Replacement Cost Value (RCV) means your insurance company will pay the full cost to replace your roof, minus your deductible, without deducting for depreciation.
· Actual Cash Value (ACV) means the insurer will only pay for the depreciated value of the roof, factoring in its age and condition at the time of loss.
For example, if your 16-year-old roof sustains hail damage and has a total replacement cost of $15,000, an ACV policy may only reimburse you for $4,000 after accounting for depreciation—leaving you responsible for the remaining balance.
The Impact of Higher Wind and Hail Deductibles
Many homeowners are accustomed to flat-rate deductibles, such as $1,000 per claim. However, insurance companies are increasingly raising deductibles specifically for wind and hail damage, meaning policyholders will need to cover more of the cost before insurance kicks in.
For example:
· If your policy originally had a $1,000 deductible for all perils, but your new policy now has a $2,500 wind/hail deductible, you would need to pay that amount before your insurance covers any repairs.
· These increases can significantly impact your out-of-pocket costs following a storm-related roof loss.
Understanding your deductible structure is crucial, as it directly affects how much you must pay before your insurance coverage applies.
Notify Stolly Insurance When You Get a New Roof
One of the most important steps you can take to protect your home and ensure you have the best possible coverage is to notify your Stolly Insurance representative when you get a new roof.
Insurance companies factor in the age and condition of your roof when determining your coverage and premiums. A new roof can often qualify you for better coverage options, including replacement cost valuation instead of actual cash value. Additionally, you may be eligible for discounts, which can help offset rising insurance costs. Keeping your agent informed about roof updates ensures your policy reflects your home’s true value and condition.
What Can Homeowners Do?
Given these changes, it’s important to take proactive steps to protect your home and financial well-being. Here’s what you can do:
1. Review Your Policy – Check whether your roof is covered at replacement cost or actual cash value and confirm your deductible amounts.
2. Consider Roof Maintenance and Inspection – Regularly maintaining your roof can extend its lifespan and help prevent damage. Some insurers may offer discounts for well-maintained roofs.
3. Explore Discounts and Mitigation Options – Some insurers provide incentives for installing impact-resistant roofing materials, which can help lower premiums.
4. Budget for Potential Costs – With higher deductibles and potential out-of-pocket expenses for older roofs, setting aside funds for roof repairs or replacement can help ease the financial burden if a loss occurs.
5. Consult Your Stolly Insurance Representative – If you have questions about your coverage or need help understanding your options, our team is here to help. We can review your policy and discuss potential adjustments to better fit your needs.
Final Thoughts
The recent changes to roof insurance coverage reflect the increasing challenges insurers face due to more frequent and severe storms in Ohio. While these adjustments may be frustrating, understanding how they impact your policy can help you make informed decisions about your home insurance.
If you have concerns or would like to review your coverage options, don’t hesitate to reach out to your Stolly Insurance representative. Keeping us informed, especially when you replace your roof, can make a big difference in how your policy is structured and what coverage is available to you. We’re committed to helping you navigate these changes and find the best solutions for your insurance needs.