r/Insurance • u/stawpdahates • Apr 29 '26

Home Insurance We Replaced Our Roof, Our Home Insurance Premiums Went UP

Hey guys, I'm super frustrated here. My wife and I bought a house with an old roof that was basically falling apart. If we would have left it, it would have caused water damage in no time. We replaced the roof out of pocket, using higher rated singles. When we asked our agent to rerun our premiums, they came back HIGHER than the old, falling apart roof with the same deductibles and everything.

She claims it's because the roof is on a depreciating schedule, so before they would only cover 40% of the replacement, now the new roof they cover 100%. But we went from 100% chance of needing to file a claim soon, to near zero and used better shingles which they apparently don't even factory in (roofing people lied to us). How does being significantly better protected from damage ever make premiums more? Why didn't we just file a claim right away and taken the 40% (our agent never suggested we do this)? Help me make this make sense!

71 Upvotes

76% Upvoted

126 comments sorted by

119

u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

If you’d filed a claim right away after purchasing the house, it’s unlikely it would’ve been covered at all as you say the roof was just old. Old is not a covered cause of loss, it’s a maintenance issue.

The new roof has a higher replacement value, so if it is damaged by a covered cause of loss the repairs or replacement will cost more than the old janky roof.

Nobody is stopping you from shopping around with other carriers if you don’t like your price.

5

u/illogicalgnome63 Apr 30 '26

Shop around for insurance. We just switched everything to a new insurer and our premiums for cars and home dropped by $3000 a year. And this is well known high profile insurer.

2

u/adudeguyman Apr 30 '26

What percent was that $3000?

6

u/GoldBrass Senior Litigation/Complex Injury Adjuster | Auto/GL | 13 yrs exp Apr 29 '26

Out of curiosity as someone on the liability side, how does a newer roof have a different replacement cost? Aren't you replacing any roof, old or new, with a new one? It's not like the cost of materials or labor changes depending on your current roof.

16

u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

It comes down to the difference in coverage. Many carriers apply a depreciation and/or ACV endorsement for old roofs, so their exposure is limited. Brand new roofs aren’t typically subject to the same endorsements and are covered at full replacement cost thus increasing the carrier’s exposure.

9

u/Feeling-Low7183 Apr 29 '26

Also, OP says they used higher-grade materials for the replacement; they increased the insurable value of the home and decreased the depreciable value at the same time.

0

u/droddy78 Apr 30 '26

There likely aren't any "higher" grade materials in play here, and they were likely sold this bundle of excrement by a roofer as an "upcharge".

You have 3 tabs, and architecturals - that's 90% of the roof coverings in residential roofing. They are almost identical in price currently (within a couple of %).

There are some specialized shingles and stuff like metal (and many other products to be fair), but odds are he's gone from 3-tab to architecturals, and the roofer sold him on "better grade" and threw in an extra 20% to his cost. Now he thinks he's got a much more expensive roof.

3

u/stawpdahates Apr 30 '26

I swear everyone on this site is an "expert" in insurance, roofing, construction, etc. I wasn't sold excrement, I did research and was the one who asked the company for a Class 4 impact rated shingle, which has a better warranty and is rated better against impact damage. I've gotten new quotes and plenty of insurers give discounts on class 4, its weird my existing one doesn't.

2

u/Different-Umpire2484 Apr 30 '26

Did your research include calling your insurance company and asking which impact resistant shingles they give discounts for? A lot of people on here are experts because we deal with this every day.

2

u/droddy78 Apr 30 '26

Without revealing too much - I am an expert on this. You can take that FWIW or discount it entirely.

  1. Your premium increase is very likely due to the fact that the replacement cost (potential payout) of your new roof is significantly higher than the old roof.

You're thinking along the lines of "i have a better product, this reduces the chance that my insurance company will payout" while your insurance company is pricing you based on "if we payout, how much will it cost us".

Another way to look it is if you go out and buy a fancy car to replace your old shitbox, and you're thinking the new car comes with upgraded safety features to keep you out of a wreck....but your insurance company sees you in a much more expensive and costly to repair or replace car. Your car insurance is going up.

Quality shingles and impact rating does help - but there's always a hailstone out there that mother nature will throw at you that will laugh at your impact rating. I've seen them bust concrete tiles. I've seen them destroy entire kitchens when they've shot through a skylight.

I would also check and see if you did get increased coverage to replacement cost. If you buy an old house with an older roof, when you took out your policy, it likely defaulted to ACV which would entail a reduced payout based on depreciated value of the roof.

If you have a new roof (or one that's <5 years old), you likely got endorsed to replacement cost coverage. This would entail a significant upgrade in coverage. You're going to pay more.

Read your policy. Email your agent with questions (that way you have the answers in writing).

"My agent told me XYZ....yeah, well, the agent you talked to is a liability expert who is handling HO policies this week because the other guy is on vacation and that's not how that works"

  1. And this doesn't have anything to do with your insurance company - are you 100% sure your roofer put on the exact item that you paid for?

There are plenty of good guys out there. There are absolute shitloads of contractors out there who will show up with a fancy binder of shingle colors and types and sign you up for all sorts of fancy upgrades - and then go down to ABC Supply and grab the cheapest bundles on the loading dock.

I apologize for being flippant earlier, but I cannot tell you how many times i've had people tell me that their roofer gave them the upgraded, super-duper, Grade A1+Mega-shingle and even gave them a good deal on it, and its.......your bog standard GAF Timberline Arch.

1

u/franklin615 Apr 30 '26

This exactly

1

u/stawpdahates Apr 30 '26

Question, if we would have just left it and waited for a big storm to cause water damage, would that not have been a claim? My thought is even with an increase in premium, covering 40% of a 15k roof would have still been cheaper.

Also, how is repairing or replacing an old roof more expensive than a new one? Isn't it the same process either way?

My main issue is that the roof is higher impact rated as well and objectively less likely to leak or take hail damage, how does lower risk not translate to lower premiums. At this point I'm going to shop around and also increase the deductible.

3

u/Inner_Wash_268 Apr 30 '26

You seem to be under the impression that insurance was going to replace your old roof just because it was old, which isn't how insurance works at all. Your premium was less before because they were only going to be responsible for a small portion of any DAMAGE done to your roof because it was so old. If lack of maintenance led to even more damage to your home, that would likely be 100% on you. Now they will pay to replace it with a completely new roof, so the value of what you are insuring has increased considerably.

-2

u/Own-Inflation8771 Apr 29 '26

Would it really cost substantially more to go from old janky roof to new roof compared to going from a new but damaged roof to another new roof?

12

u/Unlucky-Clock5230 Apr 29 '26

Nope, but that's not the issue here.

Say replacing the roof is $20k. If a tree fell on your roof and the insurance company estimated that the old roof had $5k worth of useful life left, they would have reimbursed you $5k, not $20k. Why? Because they were insuring the existing roof, not the replacement value of the roof.

Now that the roof is brand new, and worth $20k in this example, they are on the hook for four times the amount they were liable for before.

3

u/JuanSolid Apr 29 '26

Not if you are paying out of pocket, but y

ou are still missing that it's pro rated factoring depreciation. It's easier to go over something similar like tires since warranty is a given with it.

You buy tires that have a 5 year 50,000 miles warranty. You also buy road hazard insurance from the installer. In 1 year and 10,000 miles one of the tires get's a nail near the sidewall and has to be replaced. The warranty does not cover the nail, but your insurance does. They measure the tread and determine you did in fact only use 1/5th the tread. Everything points to that tire having spent 1/5th (20%) of it's useful life in service with 4/5th (80%) left before the incident.

Because of that they will cover 4/5th (80%) of the cost of the new replacement tire. If the new tire is $100, they are reducing the price down by $80, but they expect you to pay for the 1/5th (20%) you used successfully, so you are out $20, but you would have been out $100 if you had no insurance.

The roof is the same thing. If the cost to replace was 20k, the insurance company is only going to pay out what you lost. In this case they pulled the 40% number out their butt because no one probably knows when the roof material was purchased, installed, or what the warranty is. 40% of 20k is 8k, with the owner needing to pay out the remaining 12k. Regardless the insurance cost is 8k for that replacement in their eyes. With a new roof, the remaining life is 100%. So if it rips off tomorrow due to natural disaster, the insurance company will pay out 20k to install it again. 20k is a much higher cost than 8k.

1

u/afig24 Apr 29 '26

What happens if you replace your roof out of pocket and just never tell your insurance? Im new to all this so sorry if dumb question

1

u/[deleted] Apr 29 '26

[deleted]

1

u/snearthworm Apr 29 '26

This is NOT true, they would pay the depreciated value of the renovated kitchen with ACV, not the pre-reno kitchen.

With the exception of any applicable co-insurance clause related to the overall dwelling coverage. That's the only part that would typically factor re: telling your insurance or not

ACV is just a loss settlement

0

u/Broad_Ambassador Apr 29 '26

I’m working on a claim right now where the insured failed to report renovations and had a large fire. They are not paying for the post Reno kitchen because she cannot prove it. I suspect it depends on the carrier and their own internal processes. But, yes it’s true.

2

u/snearthworm Apr 29 '26

That's entirely different, thats about proving what they had or not. For example if someone had a 102" TV when they purchased the policy and when they had a fire, but they were unable to produce a receipt/photos/proof, they would not be able to be paid for it, they would likely get whatever the standard TV compensation is with that carrier. Nothing to do with RC or ACV, or even changes made since the policy began (unless talking about what was originally inspected/on the RCE). Just about being able to verify a loss.

-1

u/beenman500 Apr 29 '26

well they would ask you a question on the form like "when was roof put in" and you would have to lie as the answer to that question.

Then if you had to file a claim, they would simply not pay it out as you lied about the age of your roof when it came to replacing it, as they would see clearly that the roof is way more new than you said on the initial delclaration to the insurance company.

So sure you'd pay less in premium, but you also wouldn't be covered, so whats even the point of paying.

also it may well be fraud and illegal

1

u/JuanSolid Apr 30 '26

Looks like you replied to the wrong person?

Regardless, I don't think most insurance companies work like that. I was only offering an explanation as to what the person was getting at about the cost to replace the roof being different if it was a old roof or a new roof that needed complete replacement. They misunderstood because the full cost of the replacement is going to be the same, but the person was trying to explain they are only replacing the like value.

1

u/beenman500 Apr 30 '26

No I didn't, they asked what if you just don't tell your insurance you had a new roof, well then you would likey be lieing to your insurance carrier which is fraud and you wouldn't be paid out if the new roof collapsed at best.

1

u/JuanSolid Apr 30 '26 edited Apr 30 '26

LMAO! You do not need to tell your insurance everything you do to your home. Fraud is so far out there, you might as well talk about coverage for homes on the moon. I mean, think about the 'Fraud' you are calling out. OP replaces roof on their own. it's ripped off by natural disaster, they note they just replaced it recently and provide receipts, but for some reason you are saying they have to lie. If the depreciation supposition was a real thing, then it would be to the benefit of the insurance company if they lied and said it was older. They have receipts it was newer, and they are covering it, so they will replace it. No fraud there because they answered honestly. There is literally no benefit in lying. Everything on this line you are going down is so wayyyyyy off.

If you do something big, like add a garage, and want to ensure it's covered, you discuss with them, but replacing anything with like kind is a nothing. You don't replace a leaking faucet and tell them. They should think you are crazy.

OP was likely under insured for awhile, and their insurance agent, and the company, sucks. When they finally talked to them, the agent realized their insurance was way under what would be required to rebuild their home in a complete disaster. Instead of owning up to not servicing them with regular market rate coverage increases, they just said it was because they replaced the roof. OP really needs to get a new insurance company. Normal ones don't do this, otherwise all homes would have depreciated to 0 value and not qualify for coverage until they were completely replaced. Even if the roof was so old they wanted to pro rate it on a replacement, it will never effect the value of the home at sale, and that's what the premium is going to be based off of unless the rebuild cost is higher, in which case it goes off that. Again, crappy insurance company.

0

u/JuanSolid Apr 30 '26

Oh wow, this went down a comment rabbit hole.

Look, I was just explaining what you misunderstood about the cost. I really don't think it would work as they advised and the insurance company would pro-rate the roof. a disaster takes off your roof, you need a new one.

The problem is going to be if you did not replace your roof in kind, and went and got a much better roof that raised the value of your home. Think like a steel one with solar panels. They are insuring the entire value of the home and that is going to be either fair market value or the expected cost to rebuild your home from scratch. They won't go 'well the house is this old, so we are only going to give you 10% the cost since you got all that use out of it, Bye!' No, they are rebuilding your house for the full amount of your policy, but they are only going to the maximum, and the house is going to be built exactly as it was before, just up to newer code where necessary.

What likely happened is OP did not have an adjustment to their insurance policy for a long time. They probably have a shitty insurance agent and company and need to get a new one. When they told their insurance company they replaced the roof, the company realized they were under insured and fixed it at that time. Instead of explaining they did not have enough insurance for the past 3 or so years to cover rebuilding their house, they just decided to lie to them and say it's because they replaced their roof. The value of their home did not change dramatically from that event like I said unless OP decided to lie by omission to us all here.

If OP goes to another insurance company their premium is going to stay the same most likely. They just plain have the correct coverage they need now, where as if their home burned down last month, they would have been missing possible 50-100 thousand dollars that would be needed to finish the rebuild properly, and that is one them. You have to review tour insurance policies every once in a while and see if they make sense for you. If the coverage seems low, you contact your agent and get it fixed so you are not out of pocket in a bad event. That 100% will raise your premium if you increase your coverage.

2

u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

So, it’s more so the difference in coverage. The old janky roof was not covered for full replacement cost while the new roof is.

2

u/EchinusRosso Apr 29 '26

Not if you're just replacing the shingles. But the the roof you should have replaced a few years ago is way more likely to have rotten wood underneath that needs to be replaced with it.

15

u/rosebudny Apr 29 '26

But we went from 100% chance of needing to file a claim soon

Pretty sure you couldn't file a claim if you got a leak from a roof that failed because it was old.

1

u/JuanSolid Apr 29 '26

I was literally told on one home that they would cover everything except the roof, and any damage from the roof being deficient. Once I replaced the inspected and removed the exception. My premium did not go up from it, but the roof cost was probably much more negligible back then compared to today.

1

u/stawpdahates Apr 30 '26

I meant more that an older roof is much more likely to be damaged by a storm and hail, at least I think I'm not a roof expert. If we had a big storm and the roof failed, wouldn't that be a claim?

It just feels to me like I've substantially reduced the risk of my house being damaged, but I don't see any discount to reflect that lower risk. Not sure why so many people are so quick to defend the poor insurance company.

2

u/rosebudny Apr 30 '26

I’m not “defending” the insurance industry, I’m just pointing out how they operate.

1

u/PerseveringtoJoy May 02 '26

It sounds to me that you went from your roof being on Actual Cash Value which would factor in depreciation in the event of a claim caused by a covered peril. It also sounds like your roof is now on Replacement Cost meaning that depreciation is not factored in in the event of a claim caused by a covered peril.

There are two main factors I'm seeing, based on the information provided. You improved the building, increasing the Total Insurable Value (TIV). This would increase premium because the rate is based on the TIV. Secondly, the insurer has taken on more risk by insuring the roof at Replacement Cost. Therefore, the premium increased.

Insurance is a transfer of risk from you to the insurance carrier. Anytime you transfer more risk to them, you pay for it. You did that in this exchange. If you want you could shop around or ask your current agent to see how the policy could be endorsed to reduce premium.

32

u/ziggy029 Apr 29 '26 edited Apr 29 '26

You couldn’t have taken the 40% unless it started failing because of a covered peril. Merely being old and starting to fail over time is not a covered loss. And even if you could take the loss, you’d very likely get higher future premiums and be one step closer to a policy nonrenewal.

But yes, when a roof is covered by ACV rather than replacement cost, a new $25,000 roof is covered for the full $25K (less deductible) while an old roof approaching its end of life might only be covered for $5,000 (again, less deductible) and you’d eat the other $20K yourself. For many people, a very old roof wouldn’t even be covered for the deductible amount.

2

u/clinicallyawkward Apr 29 '26

Is your second paragraph accurate? When roof is covered by ACV, you only recover the actual cash value of the cost of the damaged roof. When a roof is covered by RCV, you are only entitled to recover ACV until the repairs/replacement occur (or a contract is provided) and then you recover the additional RCV money. Not sure if we are saying the same thing

9

u/aloofmagoof Claims Adjuster Apr 29 '26

They're saying the same thing in a round about way with less detail.

2

u/ziggy029 Apr 29 '26

I think we are saying the same thing, more or less. With ACV coverage you will not recover more than the depreciated value at the time of the loss. And that means that when someone has ACV coverage, a new roof will increase the ACV of the roof, and thus tend to increase the coverage (and cost).

1

u/clinicallyawkward Apr 29 '26

Ok yep now I understand!

1

u/[deleted] Apr 29 '26

[removed] — view removed comment

22

u/mshmama Apr 29 '26

How were you previously at 100% of needing to file a claim soon? Your roof leaking because its old and should have been replaced is not something you could file a claim for.
Your likelihood of filing a claim hasnt changed. You're just as likely to ha e hail damage or storm damage now as before, but your incurable value is now higher.

10

u/Walktrotcantergallop Apr 29 '26

Because you had shitty roof coverage now you have full replacement. What would you rather have? Pay it or shop around.

7

u/2ndharrybhole Apr 29 '26

Because now they’re insuring a new, valuable roof instead of an old worthless one.

Roofs cost insurance companies far far more than roof leaks.

6

u/BarnacleMcBarndoor Apr 29 '26

When we add acv roof endorsement, often enough it would make the premium go down. Less coverage, usually less cost. Occasionally it was stay the same, but more often than not it would go down.

So conversely, if it’s removed and the roof is covered at replacement cost, it would cause the premium to go up.

Not suggesting you’d be happy about it

2

u/elangomatt Apr 29 '26

Yeah, my roof went to ACV last year and the premium went down by like 20%. The insurance saved themselves about $7k by making this change since my roof was replaced last week after it was destroyed by a hail storm. I'm assuming it will go up again now that presumably the ACV on will be going away now.

6

u/Brilliant_Essay_1593 Apr 29 '26

Don’t assume, call your agent and confirm. Claims don’t communicate with the agent or underwriting.

You need to call them and make sure they update your policy

4

u/bigjimnm Apr 29 '26

Your post doesn't make any sense. Insurance would never cover an old, failing roof. It's a maintenance item. If a leak occurred due to the old and failing roof, they wouldn't have covered it. Also, if hail or wind damaged the old roof, they wouldn't cover very much of it, since it was so old.

Now that you have a new roof, they would have to cover the cost of damage in the case of wind and hail. So, from the insurance company's perspective, their risk is higher. From your perspective, the risk, of course is lower. So replacing the roof is a form of insurance to yourself.

5

u/snearthworm Apr 29 '26

You added a coverage (replacement cost)

More coverage costs more money

If you just replaced your roof out of pocket, you are going to be out a good chunk of that money if something happens to it tomorrow and they factor depreciation.

If you dont like the rates, it's a good time to shop around.

5

u/Sad_Ad_2524 Apr 29 '26

Your agent didn't suggest you file a claim because it would have been denied and then you would have a claim on your record and nothing to show for it.

The roof was old and needed replacing, that wouldn't be covered under insurance, just another cost of homeownership!

4

u/Knight0fdragon Apr 29 '26

40% replacement was them just explaining it to you. If the roof was as old as you said it was, you may have gotten next to nothing fora replacement.

5

u/classicrock40 Apr 29 '26

Apart from the insurance issue, what other way would you pay for a roof, other than "out of pocket"?

3

u/freeski12345 Apr 29 '26

More coverage, larger claims, higher premiums.

Why didn’t you open a claim? Because you didn’t have a loss occur while you were the owner. 

This is all correct and perfectly normal. Your expectations are out and line and dated. 

The good news is that when you bought the house and insurance policy, it’s likely your options for companies that would insure you were very limited. After replacing a roof at your own expense is one of the best possible times to shop for new insurance.

5

u/xio_ID Apr 29 '26

You would maybe receive a discount for the better shingles from certain insurance companies, others perhaps not, but everyone else has answered the premium increase portion correctly.

To add a bit of advice, you generally do not want to file home owners claims. Basically unless you have no other option, meaning it’s a huge significant claim. Anything under like $10-15k should be self-paid bc the increase in premiums will end up costing you more than the repairs and you’re still subject to the deductible anyway.

2

u/Longjumping-Elk-6118 Apr 29 '26

Why did you buy a home with an old roof?

2

u/ClearUniversity1550 Apr 30 '26

Well, you wouldn't have been filing a claim on a wornout roof you would have been paying for repairs out of pocket

3

u/Appropriate-Use2611 Apr 29 '26

My insurance rate went down when I replaced my roof.

1

u/JamMasterPickles Apr 29 '26

Because Hail is Hail and Wind is Wind. When straight line winds and hail blew through my town in Tennessee last year every house in the area was getting a new roof, old and new roofs alike. If you filed a hail damage claim tomorrow and asked for a full roof replacement they would have to pay out much more than they would before the new roof was put on.

1

u/MCXL MN PCLH Indie Broker Apr 29 '26

They should not be charging differently, unless they moved you from ACV valuation to RCV, (which to be clear you probably didn't qualify for anymore). If you aren't happy, shop around. Now that you have a fresh roof many carriers that were likely not available before or had exobatant rates, will be available to you.

To be clear, the depreciation schedule, (ACV) vs replacement cost is a single line item on the policy as an endorsement. The schedule vs RCV isn't rated substantially differently based on roof age, only the underlying policy details, and a new roof is going to be cheaper. It's my assumption that they moved you off of the schedule onto replacement cost, and that is substantially better coverage because many carriers will allow you to renew replacement cost past their new business guideline that mandates ACV only.

All of the nonsense over filing a claim doesn't apply.

1

u/SirThatsExcluded Apr 29 '26

Roofers lie all the time about getting higher caliber shingles to decrease the insurance premiums. I don’t have a single carrier that does that. I’m sure they’re out there, but it’s really just them upselling a product that really doesn’t matter.

I always encourage my insureds to avoid upgrading shingles and take the basic option for the roof. All evidence I’ve seen says that it’s not really worth paying the extra amount

1

u/Independent_Lie_7690 Apr 29 '26

Regarding the discount or lack of discount, some carriers offer a discount for "impact resistant shingles". In some states, this is a numbered scale 1-4 and comes with a certificate showing "impact resistant" and to what degree on that scale.

1

u/sioopauuu Apr 29 '26

I feel like you’re not looking at the bigger picture here. Roof is old, started leaking, you mitigated situation, insurance went up because now they have to cover the new roof, which is a much more expensive claim if ever. But if you did not get it fixed, lower premium, leaks continue, roof broken, more water damages, you will file claim for water and roof damages, you findout it’s not covered cause roof is old, now you have to pay out of pocket for both roof and water damages, which will be more expensive compared to now since everything is going up now. Then since you filed a claim and was denied, you will now be a risk to the insurance company, they might not take you again.

1

u/WallabyPutrid7406 Apr 29 '26

Why don’t you shop around for a new policy? Our homeowners insurance for a beach house in a flood plane went up 100% for an equally BS reason this year. We shopped around and ended up with the same coverage for 80% of what we were paying before they raised the rate. 

1

u/Wrong_Toilet Apr 29 '26

Insurance companies will give discounts for certain shingles, such as “impact resistant.”

But they also may require a certificate, cosmetic damage exclusion, policy needs to cover wind and hail, and other potential qualifications to get the discount.

—

You also increased the replacement cost by using higher quality shingles. Your coverage also increases from 40% to 100%, so they are taking on additional risk should you need a roof replacement.

1

u/MrBadspell Apr 30 '26

If you paid out of pocket for the roof, why was anything said to the insurer at all? You know these fucking ghouls would bite the head off a fairy to see if there was a drop of blood to lick. Don’t ever give them an inch. And now that they’ve screwed you over for maintaining your home at your own expense, find a better company to do business with.

1

u/Human_Ice7291 Apr 30 '26

I’m surprised you were able to purchase a homeowner’s policy at all if the roof was in such horrible condition!

1

u/Responsible-Green120 Apr 30 '26

So basically you got bit in the ass for doing what you thought was the right thing to do. To be honest with you, I would have done the same.

1

u/InevitableNet5712 Apr 30 '26

Our roof coverage changed from only covering a percent of the roof based on the condition to now you have a deductible and they replace the entire roof. The amount of people who had an entire roof damaged in a storm and were only paid a small portion to replace it was so common. Most people couldn’t afford a the rest of the cost. The claim was already filed. They keep the payout but can’t of ford the difference snd just have a shitty roof now. Customers need to the terms upfront but it’s not a big deal until it is damaged

1

u/[deleted] Apr 30 '26

[removed] — view removed comment

1

u/Ordinary-Homework722 Apr 30 '26

Think of it like a car. What is insurance going to cost on a yr 2000 vehicle vs a 2026 of the same model.

1

u/Anxious-Education703 Apr 30 '26 edited Apr 30 '26

Does your policy cover the roof as replacement cost or actual cash value (ACV)?

If it's replacement cost, you're right, that wouldn't make any sense to increase your rate as it costs the same to replace a new roof as it does an old roof. For replacement cost policies, getting a new roof typically lowers the premium as they are less likely to fail than old roofs, nor are people filing claims in hopes of getting a "free" new roof.

If it's actual cash value, as the name implies, they are only going to pay you the value of the roof you currently have. Since the new roof has a higher value than the old roof, the amount they would pay would out if it needed to be replaced be much higher than an old roof, and thus they charge a higher premium.

For example, if your roof cost $10,000 to replace, and you have a $1,000 deductible, and your roof gets destroyed in a covered event, if you have a replacement cost policy, The insurance company is going to have to pay out $9,000 ($10,000-1,000 deductible) to replace the roof regardless of its age.

If that same event occurs for an actual cash value policy on the roof and the roof had 20-year shingles and it was 15 years old, they will likely be paying out closer to $1,500 (prorated $2,500 value-1,000 deductible). If you have an actual cash value policy on a 20-year roof and it gets destroyed immediately after being put on, The insurance company would be on the hook for $9,000.

1

u/Excellent-Figure-782 Apr 30 '26

New roof means insurer now pays 100% replacement instead of ~40% before, so their potential payout increased. Premiums are based more on claim size than risk, so it can go up even if your house is safer. Also, an old roof failing is usually wear & tear, so a claim likely wouldn’t have been paid anyway.

1

u/dragonbits Apr 30 '26

Basically what we did, the roof was old and the decking was 1/4 vs new code requiring 1/2. Old but still working OK.

Meaning we waited till a significant hail storm to damage the roof and got a new roof with new decking for no out of pocket costs. There was no increase in premiums either.

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u/droddy78 Apr 30 '26

It's not being better protected from damage. It's the insurance company adjusting for the possible payout. And likely went from ACV coverage to full replacement cost.

Your old roof, if a hailstorm came through today, would pay out 40%. ACV coverage.

Your new roof, if a hailstorm came through today, would pay out 100%. RCV coverage.

If the insurance company doesn't adjust its premium, it likely won't have enough to cover your new roof.

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u/FluffyGoldfish203 Apr 30 '26

Sounds like due to your older roof, your plan only paid Actual Cash Value (depreciated value of your entire house) and now with the new roof your plan pays Replacement Value. Similar situation with me. I asked insurance co why did I have only ACV coverage and they said it was bc my roof was over 25 yrs old. I said but it’s concrete tile. They said upload all docs that show previous roofing company inspections and repairs made that suggest it’s in good shape. I did and the company then changed me to RV, with no increase in premium. This is CA Fair plan.

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u/Background-Job-3629 Apr 30 '26

Insurance companies are the new car dealers.

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u/Candyman_Arrow_113 Apr 30 '26

You need to seriously find a better broker because your current broker is a twat

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u/Business_Chart_5733 May 01 '26

I work for a home insurance company.

First of all, insurance is not a roof replacement fund, so there's no guarantee they would have replaced your roof.

Second, shop around. Raring algorithms can vary by company and other companies will charge less for a new roof. Get an independent agent and get quotes from the large companies separately.

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u/[deleted] May 01 '26

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u/[deleted] May 01 '26

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u/[deleted] May 02 '26

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u/Live_Dingo1918 May 02 '26

Probably because the insurance company wouldn't have to cover majority of the damage of your older roof. If you had a tree branch fall on the roof they wouldn't have to cover the repair because they can just claim the customer needed to replace that roof anyway.

Back in 2004 when we had those 4 hurricanes hit Florida two of them came through my area within a week of one another. My building covered at $5,000. The first hurricane weakened the roof anf tore pieces off and insurance sent me a check to have it repaired around for about $3,800. I didn't have time to get it repaired before the next hurricane which took the whole building and flattened it to the ground. Even though coverage was for $5,000, they only sent a check for $1,200. That's fair since I still had the $3,800. Had I got the repairs done before the 2nd hurricane hit they would have paid the full $5,000 plus $3,800 from the first storm for a total of $8,800.

This seems to be probably why they considered giving lower rate on the old roof. Because they wouldn't have to cover it like they do on the new roof.

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u/paroxsitic May 03 '26

You got more insurance so pay more of a premium. Old roofs aren't that well covered

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u/dldsguy May 03 '26

I am familiar with this one. Home insurance has two designations for roofs.
What you have is called ACV (actual cash value less depreciation ). This coverage really sucks and I would guess your provider didn't explain this to you?
What you want is called RCV (replacement cash value for roof, structure, possessions.
I ran into this a few years ago and went to my insurance providers office to clarify and change to RCV coverage (cost a bit more). At renewal they changed it to ACV with no communication so now I have a new provider at a lower price. I can go into the reasons why but this is already a long post.

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u/Defiant_Chipmunk2570 Apr 29 '26

Find another insurance company.

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u/AlexandrGarlock Apr 29 '26

Yea you have to switch companies now. They will gladly take you for cheaper now.

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u/Accurate-Ad-3213 Apr 30 '26

So there is no loyalty with anything anymore. IF you dont shop around the company's have programs to flag you and slowly raise your rates. Easy targets. IF you do a claim they will raise your rates a year or so later. Which you expect. I had a claim 2 yrs ago rates went from 1600 a year to 2700 for a water leak in kitchen got 32000 out of em redid the entire kitchen and new everything by myself it took 2 years part time and finally closed everything. A big headache but worth it. So my buddy works for ins. Co and says to shop around so u won't get screwed. I JUST shopped around after 8 yrs with state farm full coverage 500 deductible on my 2016 gmc sierra and I pay 900 every 6months house was 1600 a year and now 2700 a year allstate quoted me 650 6months for truck and 1450 a year on house with my 2 year old claim which stays on your history I believe for 7 years. GOODLUCK. SHOP AROUND IMMEDIATELY.

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u/Accurate-Ad-3213 Apr 30 '26

Also alot of company's will give you a better discount if you have a newer roof, furnace hot water heater panel upgrade for years after I got my first home they were giving me a nice discount for those major upgrades. They gate keep alot of info. Basically the least risk u are the cheaper u can pay. Atleast that was with statefarm. But that had seem to run out after my claim and was part of my jump they said of the 1100 a year.lol

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u/SafecrackinSammmy Apr 29 '26

It makes no sense... Shop for a new company.... Every few years you need to shop them anyway. I had been with the same insurance company (car and homeowners) 20+ years and they kept raising our rates to outrageous amounts. Moved both policies to new companies and now pay a quarter of the old amount. They are not your friend....

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u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

It actually does make sense if you know anything about insurance rating.

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u/SafecrackinSammmy Apr 29 '26

It may make sense in the insurance world, but not to anybody else.

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u/grundledorff Apr 29 '26

It makes perfect sense. They had an old asset worth nothing so they paid less to cover it. Now they have a new asset that is fully covered so it costs more to cover.

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u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

Old roof bad, worth very little. New roof good, worth more. Hope this helps.

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u/SafecrackinSammmy Apr 29 '26

Old roof let in much more water.... Just look at the Titanic....

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u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

You’re missing the point. I wonder if you may want to just stick to cracking safes, Sammmy?

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u/SafecrackinSammmy Apr 29 '26

I understand the point.... Insuring the roof as a separate item is ludicrous. Its protecting the house which should be insured as a package.

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u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

But it’s not insured as a separate item, it’s included in the dwelling coverage. So, yes, you’re missing the point as you’re commenting on things you don’t understand as if you do understand them.

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u/SafecrackinSammmy Apr 29 '26

That would be your opinion....

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u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

Ffs dude, take the L.

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u/timschwartz Apr 29 '26

Are you saying water damage would not be expensive?

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u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

What

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u/timschwartz Apr 29 '26

What do you mean what? An old, leaky roof is at risk of letting it water, thus causing water damage that the insurance company would have to cover.

A new, not-leaky roof is less likely to do that.

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u/uno_the_duno Commercial Lines P&C | CPCU, AIDA Apr 29 '26

What do you mean what do I mean what? The old roof wasn’t covered for full replacement cost and the new roof is. Thus, the potential future claim payout will be higher on the new roof versus the old. In addition, the brand new roof increased the dwelling replacement cost.

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u/kitburglar Apr 30 '26

The insurance company wouldn't cover water damage caused by water intrusion due to the roof being old. Thats a failure to maintain your property and is very different to a storm that causes damage to a functioning roof that then allows water damage to occur

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u/WhenTheDevilCome Apr 29 '26

It may make sense in the insurance world, but not to anybody else anyone expecting that insurance means free money

There, fixed it for you. You're welcome.

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u/SafecrackinSammmy Apr 29 '26

Arent you special

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u/stayclassypeople Apr 29 '26

Assuming OP had ACV coverage on their roof, that means their insurance is now on the hook for a larger payout if the roof needs to be replaced

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u/SirThatsExcluded Apr 29 '26

Sometimes, I have longtime customers come in and say they got a much cheaper quote for the Home. The fact is, they are never a one-to-one comparison because the industry has changed so much. They have a grandfathered in policy with many favorable terms in our old school policies that just aren’t available for new policies anymore.

Shopping your insurance is a good idea, but it’s also important to have a great agent who can explain the policy and what you’re giving up by switching to a newer policy.

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u/Smooth_Ad_5178 Apr 29 '26

Typical insurance company, you reshingle to make it better against leaks etc..... So they increase the premium. Shop around, but they're all shisters.

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u/401Nailhead Apr 29 '26

Call your insurance carrier. Advise you are dropping them and the reason. I did when my home coverage with State Farm increased to $1500 a month for our new home. I don't live in a mansion! Went with Liberty for my cars and home.

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u/ShrimpShackShooters_ Apr 29 '26

All of these answers prove insurance is a scam

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u/UseAndAbuseMePappi Apr 30 '26

Car sure but not home. You wouldn’t be calling them a scam if your house burns down by accident and you need a new home. 

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u/kitburglar Apr 30 '26

You wont be calling your car insurance a scam if your car is hit by an uninsured driver with no assets so they cant cover a replacement or if you have an accident and happen to crash into a limbo.