Will Insurance Cover a 25 Year-Old Roof?
If you’re considering replacing your roof, you may be wondering, “Will insurance cover a 25-year-old roof?” The good news is that most insurers will pay for the replacement of your roof regardless of its age.
However, there are some exceptions to this rule, such as age-based code upgrades. If your roof is over 25 years old, you should consider getting a new roof first.
Insurers prefer older roofs
Many insurance companies are unwilling to write new policies for homes with asphalt shingle roofs that are 10 or 12 years old. An insurer, who did not name its source, compiled a list based on information submitted to state insurance regulators.
Four of the eight insurers did not write new policies for roofs more than 10 years old. Two more set their cutoff age at 12 years, while three others said they would not insure homes with shingles older than 15 years.
Insurers are not likely to cancel a policy over an old roof, despite the fact that many older homes have inadequate roofing.
The average roof lifespan today is significantly shorter than it used to be, due in large part to our changing climate. Many roofing companies canvassed neighborhoods, promising free roofs in exchange for a list of their contact information.
This practice is unfortunate, but necessary to keep your roof protected. Moreover, insurance companies will be less likely to cancel a policy because of an old roof.
They require inspection
You may wonder if you can still get a homeowners insurance policy if your roof is over 25 years old. While it is true that most insurance companies will not insure an older roof, you should check for damage, leaks, and other problems before applying.
A qualified inspector will find any problems so you can save money by getting a professional inspection.
In addition to a thorough inspection, your insurer will be able to find out what the damage is.
While some insurers will refuse to cover a roof that is more than 25 years old, others may offer discounts for older roofs.
For example, you may be able to save as much as $1,500 by getting an ACV policy. But if you have a 25-year-old roof, you might only receive half of the insurance coverage, since the value of an old roof will go down by 62.5% after 25 years. The insurer will most likely not cover the entire replacement cost.
They have higher deductibles
If your roof is over 25 years old, you might be wondering why it has a higher deductible. First, consider its depreciation. In this example, the roof will cost $20,000, and your deductible of $1,000 will cover 25% of the total cost.
Your insurance company will pay the rest, or $14000. What’s more, depreciation is recoverable based on the type of policy you have.
Replaced-cost coverage allows you to recover $5,000 of depreciation after repairs, whereas non-replacement cost coverage doesn’t allow you to depreciate your roof after the repair.
While many homeowners insurance policies do offer a separate deductible for wind or hail, a new roof can typically be covered for a lower amount.
Hurricane damage, on the other hand, can carry a much higher deductible. However, if you live in a hurricane-prone state, your deductible will likely be significantly higher than the deductible on a 25-year-old roof.
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