Coverage

---

What Is Coverage?

Coverage refers to the protection your homeowner’s insurance policy provides for roof damage, repairs, or replacement resulting from covered perils. It defines what types of damage are protected, under what circumstances, and how much your insurance company will pay when you file a claim.

Understanding your roof coverage is essential before damage occurs. The right coverage means your insurance pays for necessary repairs, while inadequate coverage can leave you with substantial out-of-pocket expenses.

← Back to Glossary

---

Types of Roof Coverage

Dwelling Coverage (Coverage A)

What it is: The primary coverage that protects your home’s structure, including your roof.

What it covers:

• Roof replacement or repair after covered events
• Structural components (decking, trusses, rafters)
• Roofing materials (shingles, underlayment, flashing)
• Attached structures sharing the roofline

Coverage limits:

• Listed on your declaration page as “Coverage A”
• Typically reflects your home’s replacement cost
• Should be sufficient to rebuild your entire home
• Roof claims use a portion of this limit

Example: If you have $400,000 in dwelling coverage and your roof replacement costs $25,000, you’re using $25,000 of your $400,000 limit for this claim.

Other Structures Coverage (Coverage B)

What it is: Coverage for detached structures on your property.

What it covers:

• Detached garage roofs
• Shed or workshop roofs
• Gazebo or pergola covers
• Detached carport roofs
• Pool house or cabana structures

Coverage limits:

• Usually 10% of Coverage A
• Can be increased for higher premiums
• Separate from dwelling coverage

Example: With $300,000 dwelling coverage, you’d typically have $30,000 for other structures, which would cover a detached garage roof replacement.

Personal Property Coverage (Coverage C)

What it is: Coverage for your belongings damaged by roof failures.

What it covers:

• Furniture damaged by roof leaks
• Electronics ruined by water infiltration
• Clothing, bedding, and personal items
• Stored items in attic spaces
• Collectibles or valuables (with limitations)

Coverage limits:

• Typically 50-70% of Coverage A
• May have sublimits for specific items
• Separate deductible may apply

Important: This covers collateral damage to belongings, not the roof itself.

Additional Living Expenses (Coverage D)

What it is: Coverage for temporary living costs if roof damage makes your home uninhabitable.

What it covers:

• Hotel or rental accommodation costs
• Restaurant meals (above normal food costs)
• Storage for your belongings
• Pet boarding if necessary
• Additional transportation costs

Coverage limits:

• Usually 20-30% of Coverage A
• Time limits apply (often 12-24 months)
• Only while repairs make home unlivable

Example: Severe storm damage requires extensive roof and interior repairs taking three months. This coverage pays for your hotel and meals during displacement.

---

Coverage Types: RCV vs. ACV

Replacement Cost Value (RCV) Coverage

What it means: Insurance pays the full cost to replace your roof with new materials of like kind and quality, without deducting for depreciation.

How it works:

Two-payment structure:

1. Initial payment: Actual cash value (RCV minus depreciation and deductible)
2. Final payment: Recoverable depreciation (paid after completing repairs)

Requirements:

• Must complete repairs to receive full payment
• Typically must finish within 180-365 days
• Need paid invoices and completion documentation
• Must use licensed, insured contractors

Advantages:

• Full replacement cost covered
• No out-of-pocket for depreciation
• Roof replaced with current materials
• Most comprehensive protection

Example:

• Roof replacement cost: $20,000
• Depreciation: $7,000
• Deductible: $2,500
• Initial check: $10,500 ($20,000 – $7,000 – $2,500)
• After completion: $7,000 (recoverable depreciation)
• Total received: $17,500

Actual Cash Value (ACV) Coverage

What it means: Insurance pays the depreciated value of your roof at the time of loss.

How it works:

Single payment:

• Replacement cost minus depreciation minus deductible
• No additional payments after repairs
• You pay depreciation out-of-pocket

When it applies:

• Older roofs (often 15+ years at policy purchase)
• High-risk properties
• Budget insurance policies
• Properties with claim history

Disadvantages:

• Significant out-of-pocket costs
• Depreciation can be substantial
• May not cover full replacement
• Less comprehensive protection

Example:

• Roof replacement cost: $20,000
• Depreciation: $7,000
• Deductible: $2,500
• Total payment: $10,500
• Your out-of-pocket: $9,500 (depreciation + deductible)

How to Determine Your Coverage Type

Check your declaration page:

• Look for “Replacement Cost” or “Actual Cash Value”
• May say “RCV” or “ACV” for roof coverage
• Sometimes listed under endorsements or special provisions

Ask your agent:

• Request clarification if unclear
• Understand if coverage changes based on roof age
• Learn about options to upgrade coverage

---

Covered Perils

Standard Covered Perils

Most homeowner’s policies cover roof damage from these events:

Weather-related events:

Wind and hail:

• Hurricane or tornado damage
• Severe thunderstorm winds (typically 50+ mph)
• Hail of any size causing functional damage
• Wind-driven rain through damaged areas

Fire and lightning:

• Direct lightning strikes
• Fire from any sudden cause
• Smoke damage from covered fires
• Explosion damage

Weight of ice or snow:

• Roof collapse from excessive snow load
• Ice dam damage and resulting leaks
• Damage from falling ice or icicles
• Structural stress from accumulation

Falling objects:

Covered falling objects:

• Trees or large branches
• Aircraft or vehicle impacts
• Meteorites or space debris
• Construction debris from neighboring property

Sudden and accidental events:

Unexpected occurrences:

• Vandalism or malicious mischief
• Theft of roof components
• Accidental damage from repair work
• Vehicle impact (covered under different provisions)

Named Perils vs. All-Risk Coverage

Named perils policies (HO-2):

• Only specifically listed events covered
• Must prove damage from covered peril
• More limited protection
• Lower premiums

All-risk/Open perils policies (HO-3, HO-5):

• All causes covered except specifically excluded
• Broader protection
• Burden on insurer to prove exclusion applies
• Higher premiums but better coverage

Most homeowner’s policies (HO-3) provide:

• All-risk coverage for dwelling (including roof)
• Named perils for personal property
• Best balance of cost and protection

---

Common Coverage Exclusions

What’s NOT Covered

Wear and tear:

• Normal aging and deterioration
• Gradual weathering over time
• Predictable end-of-life failure
• Maintenance-related issues

Poor maintenance:

• Damage from neglect
• Failures from deferred repairs
• Preventable deterioration
• Issues you should have addressed

Pre-existing damage:

• Damage that existed before policy period
• Previous damage not repaired
• Conditions present at policy purchase
• Prior wear contributing to failure

Certain weather events:

Typically excluded:

• Flood damage (requires separate flood insurance)
• Earthquake damage (requires separate earthquake coverage)
• Ground movement or settling
• Sinkholes (varies by state and policy)

Construction defects:

• Poor workmanship or installation
• Design flaws or inadequate materials
• Code violations at installation
• Contractor negligence

Intentional acts:

• Deliberate damage by insured
• Fraudulent claims
• Self-inflicted damage
• Criminal activity by homeowner

Government action:

• Seizure or destruction by authorities
• Eminent domain
• Police or military action
• Civil unrest (may be covered in some policies)

Special Exclusions to Watch For

Cosmetic damage exclusion:

• Damage that’s only aesthetic
• No functional impairment
• Common in hail-prone regions
• See our cosmetic damage glossary entry for details

Roof age limitations:

• ACV-only coverage for roofs over certain age (often 15-20 years)
• Limited coverage for very old roofs
• May require inspection at renewal
• Potential for non-renewal if too old

Workmanship exclusions:

• Installation defects not covered
• Contractor error excluded
• Must pursue contractor directly
• Some policies have limited coverage for resulting damage

Matching and code upgrade limitations:

• May not cover costs to match discontinued materials
• Code upgrades excluded without special endorsement
• Aesthetic matching not guaranteed
• See code upgrade coverage glossary entry

---

Coverage Limits and Sublimits

Understanding Policy Limits

Dwelling coverage limit:

• Maximum insurer will pay for all dwelling damage
• Should equal full replacement cost of home
• Review annually as construction costs change
• Roof claims typically use portion of this limit

Adequate coverage calculation:

• Current cost to rebuild per square foot in your area
• Multiply by home square footage
• Add 20-30% cushion for cost fluctuations
• Consider unique features or high-end finishes

Example: 2,500 sq ft home, $200/sq ft construction cost = $500,000 minimum dwelling coverage recommended.

Common Sublimits

Specific dollar caps on certain coverage types:

Code upgrade coverage:

• Often 10-50% of Coverage A
• May have dollar cap ($25,000, $50,000, $100,000)
• Requires separate endorsement
• Pays for bringing roof to current code

Ordinance or law coverage:

• Similar to code upgrade
• Covers demolition and compliance costs
• Percentage of dwelling coverage or fixed amount
• Essential for older homes

Loss assessment coverage:

• For condos or HOAs
• Covers special assessments for shared roof damage
• Typically $1,000-$50,000 limits
• Applies when HOA’s coverage insufficient

Tree removal:

• Often capped at $500-$1,500 per tree
• Only if tree damages insured structure
• May have per-occurrence limits
• Removal must be necessary, not optional

Personal property (within structures):

• Usually 50-70% of Coverage A
• Sublimits for jewelry, electronics, collectibles
• Scheduled items need additional coverage
• Applies to collateral damage from roof failures

---

Deductibles and Out-of-Pocket Costs

Standard Deductibles

What a deductible is:

• Amount you pay before insurance coverage begins
• Applied per claim occurrence
• You’re responsible regardless of claim size
• Reduces premiums by sharing risk

Deductible types:

Flat dollar amount:

• Fixed sum ($500, $1,000, $2,500, $5,000)
• Easy to understand and budget for
• Same regardless of claim size
• Common for most homeowner policies

Percentage deductible:

• Percentage of dwelling coverage (1%, 2%, 5%)
• Increases with Coverage A amount
• Can be substantial on high-value homes
• Often results in higher out-of-pocket costs

Example:

• $300,000 dwelling coverage
• 2% deductible = $6,000 you pay
• $1,000 flat deductible = $1,000 you pay
• Significant difference in out-of-pocket cost

Special Deductibles

Wind/hail deductible:

• Separate, often higher deductible for wind or hail
• Common in coastal or hail-prone areas
• Typically 1-5% of dwelling coverage
• Applies instead of standard deductible for these perils

Hurricane deductible:

• Special deductible for named storms
• Coastal states and hurricane zones
• Often 2-5% of dwelling coverage
• Triggered when National Weather Service declares hurricane

How deductibles apply:

• One deductible per occurrence/event
• All related damage (roof, interior, exterior) under single deductible
• Separate event = separate deductible
• Personal property may have separate deductible

---

Optional Coverage Enhancements

Endorsements and Riders

Valuable coverage additions:

Extended replacement cost:

• Pays above dwelling limit (typically 25-50% more)
• Protects against construction cost increases
• Useful in inflationary periods
• Higher premium but valuable protection

Guaranteed replacement cost:

• Pays whatever it costs to rebuild, no cap
• Rare and expensive
• Most comprehensive protection
• May have age or maintenance requirements

Ordinance or law coverage:

• Pays for code compliance upgrades
• Essential for homes over 10-15 years old
• Covers demolition, reconstruction, and upgrades
• Typically adds $25-$150 annually

Equipment breakdown:

• Covers mechanical failures
• May include HVAC damage during storm events
• Useful for rooftop equipment
• Supplements standard coverage

Water backup coverage:

• Covers sewer and drain backups
• Relevant for roof-related drainage issues
• Can help with collateral damage scenarios
• Usually inexpensive addition ($40-$150/year)

Inflation guard:

• Automatically increases dwelling coverage annually
• Keeps pace with construction cost inflation
• Prevents underinsurance
• Usually included or minimal cost

Umbrella Policies

Excess liability protection:

• Provides additional coverage above standard limits
• Typically doesn’t enhance roof coverage directly
• May help in liability scenarios (falling debris injures someone)
• Covers gaps in other policies

---

Coverage for Different Roof Types

Asphalt Shingle Roofs

Standard coverage:

• Most widely covered roof type
• Clear coverage standards
• Established depreciation schedules
• Straightforward claims process

Considerations:

• Age-based coverage changes common
• Easier to find matching materials
• Lower replacement costs
• Frequent claims in hail-prone regions

Premium Roofing Materials

Metal roofing:

• Longer expected lifespan (40-70 years)
• Lower depreciation rates
• May qualify for insurance discounts
• Higher initial replacement costs

Tile or slate:

• Very long lifespan (50-100+ years)
• Minimal depreciation
• Individual tile replacement vs. full roof considerations
• Matching challenges can affect coverage

Synthetic materials:

• Coverage similar to material being imitated
• Warranty specifications important
• Newer materials may have limited claims history
• Verify coverage before installation

Flat or Low-Slope Roofs

Different coverage considerations:

• Modified bitumen, TPO, EPDM, built-up
• Commercial-style claims assessment
• Maintenance history more important
• May have different depreciation schedules

Challenges:

• Harder to distinguish new from old damage
• Gradual failures more common
• May require commercial policy if extensive

---

How Coverage Limits Are Determined

Replacement Cost Estimation

Insurers calculate based on:

Home characteristics:

• Square footage and layout
• Construction quality and materials
• Architectural features and complexity
• Age and condition
• Local construction costs

Roof-specific factors:

• Roof size and complexity
• Material type and quality
• Pitch and accessibility
• Number of penetrations and features
• Local labor costs

Regional considerations:

• Construction cost variations by area
• Local material availability
• Labor market conditions
• Building code requirements

Reviewing Coverage Adequacy

Annual review recommended:

Check if coverage keeps pace with:

• Construction cost inflation (often 5-15% annually in recent years)
• Home improvements or additions
• Material cost changes
• Regional market conditions

Signs you may be underinsured:

• Dwelling coverage unchanged for 5+ years
• Recent major renovations not reflected
• Coverage below current rebuilding cost estimates
• Recent comparable home claims exceeded their limits

How to verify adequacy:

• Request current replacement cost estimate from insurer
• Get independent contractor rebuild estimate
• Use online replacement cost calculators
• Compare to similar homes’ coverage amounts

---

Coverage and Claim Scenarios

Scenario 1: Standard Hail Damage

Situation:

• Hailstorm damages 60% of roof
• Home has RCV coverage
• $2,500 deductible
• Roof replacement cost: $22,000

Coverage application:

• Dwelling coverage applies
• Full replacement cost covered (minus depreciation initially)
• Single deductible for entire event
• Collateral interior damage also covered under same claim

Payment:

• Initial: $22,000 – $8,000 depreciation – $2,500 deductible = $11,500
• After completion: $8,000 recoverable depreciation
• Total: $19,500 received

Scenario 2: Wind Damage with Separate Wind Deductible

Situation:

• Hurricane damages roof
• Home has 2% wind deductible
• $400,000 dwelling coverage
• Roof replacement cost: $28,000

Coverage application:

• Wind deductible applies: 2% of $400,000 = $8,000
• RCV coverage provides full replacement
• Higher out-of-pocket than standard deductible

Payment:

• Initial: $28,000 – $10,000 depreciation – $8,000 deductible = $10,000
• After completion: $10,000 recoverable depreciation
• Total: $20,000 received
• Your cost: $8,000 deductible

Scenario 3: Older Roof with ACV Coverage

Situation:

• 18-year-old roof damaged by storm
• Home has ACV coverage due to roof age
• $1,500 deductible
• Roof replacement cost: $18,000

Coverage application:

• ACV coverage due to roof age
• Heavy depreciation (75%)
• Single payment, no recoverable depreciation

Payment:

• Replacement cost: $18,000
• Depreciation (75%): $13,500
• ACV: $4,500
• Minus deductible: $1,500
• Total received: $3,000
• Your out-of-pocket: $15,000 ($13,500 depreciation + $1,500 deductible)

Scenario 4: Partial Damage with Code Upgrades

Situation:

• Storm damages 40% of roof
• Building codes require full replacement if >25% damaged
• Home has ordinance or law coverage (25% of Coverage A)
• $300,000 dwelling coverage

Coverage application:

• Partial damage covered under standard dwelling coverage
• Ordinance or law coverage pays for additional requirements
• Code upgrades covered up to $75,000 (25% of $300,000)

Payment:

• Actual damage repair: $12,000
• Required replacement of undamaged portion: $18,000
• Code upgrades: $6,500
• Total covered: $36,500 (minus depreciation and deductible)
• Without ordinance coverage, you’d pay $24,500 out-of-pocket

---

Maintaining Your Coverage

Regular Policy Reviews

Annual check-ups:

Review with your agent:

• Current dwelling coverage amount
• Coverage type (RCV vs. ACV)
• Deductible amounts and types
• Optional endorsements
• Premium changes and reasons

After major events:

• Home renovations or additions
• Roof replacement
• Market construction cost changes
• Local disaster events
• Carrier or policy changes

Documentation for Coverage

Maintain records:

Home documentation:

• Original roof installation date and cost
• Maintenance and repair records
• Professional inspection reports
• Photos showing roof condition over time
• Warranty documents

Policy documentation:

• Declaration pages from each renewal
• Policy documents and endorsements
• Coverage change confirmations
• Claims history
• Agent correspondence

Why this matters:

• Proves proper maintenance (counters neglect claims)
• Establishes baseline condition
• Supports coverage disputes
• Verifies coverage levels over time

---

Questions to Ask About Your Coverage

Questions for Your Insurance Agent

1. Do I have RCV or ACV coverage for my roof?
2. What is my specific deductible for wind and hail damage?
3. Do I have ordinance or law coverage? If not, should I add it?
4. Is my dwelling coverage adequate based on current construction costs?
5. Are there age-related limitations on my roof coverage?
6. What perils are specifically excluded from my policy?
7. Do I have cosmetic damage exclusions in my policy?
8. How often should we review and update my coverage limits?
9. What discounts am I eligible for (impact-resistant shingles, new roof, etc.)?
10. What happens to my coverage if my roof reaches a certain age?

Questions After Damage Occurs

1. Which coverage applies to my specific damage type?
2. How is my deductible calculated and applied?
3. Will one deductible cover all related damage (roof, interior, exterior)?
4. Do I have coverage for collateral damage inside my home?
5. If repairs require code upgrades, will those costs be covered?
6. How long do I have to complete repairs to receive full RCV?
7. What documentation do I need to provide?
8. Can I choose my own contractor?

---

Related Roofing Terms

• Declaration Page: Document showing your specific coverage details and limits
• RCV (Replacement Cost Value): Type of coverage paying full replacement cost
• ACV (Actual Cash Value): Type of coverage paying depreciated value
• Deductible: Amount you pay before coverage begins
• Covered Perils: Specific events your policy protects against
• Exclusions: Events or damage types specifically not covered
• Code Upgrade Coverage: Optional endorsement for building code compliance costs
• Depreciation: Reduction in value affecting ACV coverage
• Claim: Formal request to use your coverage

---

Professional Coverage Review

Understanding your roof insurance coverage before you need it can save thousands of dollars and significant stress. As professional roof consultants, we help homeowners:

• Review insurance policies to understand coverage details
• Assess whether current coverage is adequate
• Identify gaps or limitations in protection
• Recommend coverage enhancements based on your roof
• Document roof condition to support proper coverage
• Explain technical terms and policy provisions
• Prepare for smooth claims when damage occurs

Unsure if your roof insurance coverage is adequate? Contact us today for a free consultation. We’ll review your policy, assess your roof’s condition, and help you understand exactly what protection you have—and what you might need to add.