Unpacking your Homeowners Policy: Part 6 – Roof & Siding Considerations
Homeowners across the country are facing big changes in how insurance companies cover roof and siding claims—and most people have no idea until they file a claim and get an unexpected payout (or lack thereof).
Over the past several years, insurance companies have been squeezed by rising costs in three key areas:
- Material Costs – The cost of roofing and siding materials has skyrocketed.
- Labor Costs – Skilled labor shortages have made repairs more expensive than ever.
- Weather Patterns – More frequent and severe wind and hailstorms have led to record-high claim payouts.
These factors have forced insurance companies to adjust how they cover roof and siding claims, both to mitigate price increases for homeowners and to protect their own bottom line from unsustainable losses.
Here’s what you need to know so you’re not caught off guard when a storm rolls through your neighborhood.
The Truth About Roof Replacement & Insurance Payouts
There’s an industry belief (while be it unproven) that nearly 80% of new roofs in America are being paid for by insurance companies.
This is probably the result of a combination of factors:
- Public adjusters advocating claims
- Homeowners delaying roof replacements until a storm “helps” them out
- A misunderstanding that insurance acts as a home warranty
The reality is, insurance companies aren’t in the business of maintaining homes—they’re in the business of covering sudden and accidental damage. But over the years, insurers have found themselves footing the bill for roofs that were already near the end of their lifespan, with wind or hail simply pushing them over the edge.
Because of this, insurers have made significant changes to how they cover roofing claims.
Roof Schedules: How Your Payout is Changing
Most homes have Replacement Cost Value Settlement for Coverage A, current policies apply a limitations to roofs and siding when damaged by Wind and Hail.
Roof Schedules are now the norm. A roof schedule is a depreciation table that determines how much of your roof’s value will be covered based on its age at the time of a claim. In some case a roof is insured at 100% replacement cost after the first year of installation and tapers down each year until coverage nearly disappears at the conclusion of the roofs lifetime as defined by the manufacturer (usually 30 years).
This means that if you have a 25-year-old roof and experience hail or wind damage, your insurance company may only pay for 5–10% of the cost of a new roof before applying your wind/hail deductible—leaving you to cover the rest out of pocket.
It is important to note that the schedule only applies to wind and hail damage—if your roof suffers a loss from another covered peril (such as fire), then the claim would be settles at Replacement Cost Value.
Some Insurers Give You the Choice—But Should You Take It?
Not every insurance company is forcing roof schedules onto policyholders. Some are offering it as an option to help reduce premium costs.
This puts the decision in your hands:
- Opt for a roof schedule to lower your premium
- Stick with full replacement cost to avoid surprise out-of-pocket costs later
For homeowners with newer roofs, accepting a roof schedule might make sense. But if your roof is 15+ years old, it’s worth reconsidering (if the insurance company allows)—because when a claim happens, the savings on premiums may not be worth the massive out-of-pocket cost for a replacement.
Siding Coverage: The Problem with Partial Replacements
Roofing isn’t the only area where insurance coverage is changing. Siding coverage has also been quietly adjusted by many insurers.
- The Old Standard: If a storm damaged one side of your home’s siding, insurers would often cover all four sides to ensure a uniform look.
- The New Reality: Today, most policies only pay for the damaged siding.
This means that if a hailstorm damages only one side of your home, your insurer may only pay to replace that one section—leaving you with three mismatched sides.
Most homeowners don’t realize this until they file a claim, only to find out that:
- The replacement siding doesn’t perfectly match the old siding
- Siding manufacturers change colors and materials every few years
- Their home now has visible mismatched siding that hurts curb appeal
For some homeowners, this isn’t a big deal. For others—especially those with homes in high-visibility areas—this can be a major issue.
The Solution: Matching Siding Endorsements
To address this problem, some insurers offer an endorsement that guarantees matching siding replacement in the event of a claim.
- If this coverage is added, all four sides of your home’s siding will be replaced to maintain a uniform appearance.
- If it’s not added, only the damaged siding will be replaced, regardless of whether a match exists.
This is another critical decision homeowners need to make before purchasing or renewing their policy.
What Homeowners Should Do Right Now
With all these changes, here’s what you should do to avoid surprises at claim time:
- Check if your policy includes a roof schedule – If it does, understand how much of a payout reduction you’d face if your roof is older.
- Review your wind and hail deductibles – If you have a 1% or 2% deductible, make sure you’re financially prepared for the actual cost you’d be responsible for.
- Ask your insurer about matching siding coverage – If you don’t want mismatched siding, find out if you can add an endorsement for full replacement.
- Evaluate your long-term costs – If you’re considering opting for a roof schedule to lower your premium, weigh the short-term savings against the potential out-of-pocket expense when your roof eventually needs replacement.