Your roof: actual cash value or replacement cost?
Two homes, same storm, same damage. One owner gets a new roof. The other gets a check for a fraction of it.
Home · Updated October 2026
Why the roof is treated differently
In much of Missouri, wind and hail are the most common reasons people file homeowners claims, and the roof takes most of that damage. To manage the cost, many insurers now settle roof claims differently from the rest of the house, especially on older roofs.
The two ways a roof claim can be paid
Replacement cost. The policy pays what it costs to replace the damaged roof with similar materials, minus your deductible. Some policies pay part up front and the rest once the work is done.
Actual cash value (ACV). The policy pays the roof's depreciated value: the replacement cost minus wear for its age. A shingle roof with an expected life of around 20 to 25 years that is 15 years old may be valued at a fraction of a new roof.
Example: a new roof costs $16,000. Your roof is 15 years old.
- Replacement cost, $2,000 deductible: about $14,000 paid.
- ACV, depreciated by roughly 60%, $2,000 deductible: about $4,400 paid.
The storm and the damage are identical. The difference is a line on your declarations page or an endorsement in your policy.
How to tell which you have
Look for:
- An endorsement with wording like "roof surfacing payment schedule," "actual cash value roof," or "roof surface settlement"
- A separate deductible for wind and hail, often a percentage
- A note about roof age on the declarations page
If you cannot find it, send us your declarations page and we will tell you.
Things that affect roof settlement and price
- Roof age. The biggest factor. Some companies switch to ACV past a certain age; some will not write older roofs at all.
- Material. Architectural shingles, metal and impact-resistant shingles may be treated more favorably by some companies.
- Impact-resistant (Class 4) shingles may qualify for a discount with some insurers.
- Prior roof claims.
Cosmetic damage exclusions
Some policies exclude cosmetic damage to roofs, such as hail dents on metal that do not affect function. If you have a metal roof, ask whether this applies.
What to do with this
- Know your roof's age. Keep the invoice from the last replacement.
- Compare quotes on the same terms. A cheaper policy with ACV roof coverage is not cheaper after a storm.
- Ask about the trade-off. Replacement cost on an older roof may cost more or be unavailable with some companies. We can show you what each company offers for your roof.
Common questions
What is actual cash value roof coverage?
It pays the roof's depreciated value, not the cost of a new roof, so older roofs receive much less after a claim.
How do I know if my roof is covered at replacement cost?
Check your declarations page and endorsements for roof settlement wording, or send your policy to us to review.
Does roof age affect homeowners insurance?
Yes. It is one of the biggest factors in price, eligibility and how roof claims are paid.
Do impact-resistant shingles lower my premium?
With some insurers, Class 4 impact-resistant shingles may qualify for a discount.
The short version- Many policies pay depreciated value on older roofs.
- The difference after a hail storm can be thousands of dollars.
- Look for roof settlement wording in your endorsements.
- Compare quotes on the same roof terms, not just price.
Related
Questions about your own situation? Call 417.206.3733 or send us your current policy. We are licensed in Missouri, Kansas and Oklahoma, and you can buy by phone without coming in.
Written by Auto Insurance Express. Reviewed by Philip Edwards, founder. Philip has run independent insurance agencies in southwest Missouri since 1997. More about the agency.
General information, not advice about your specific policy. Coverage, exclusions and eligibility are determined by the policy forms and endorsements your insurer issues, and state rules change. Confirm details with us before you rely on them.
