Tristate Home and Auto

Tag: roof

  • What’s the best option on wind and hail claims, ACV or RC?

    What’s the best option on wind and hail claims, ACV or RC?

    ACV is actual cost value and means that in case of a claim the insurance carrier will payout based on a roof schedule or depreciated value, less your deductible. RC or replacement cost means the carrier will payout the total cost to replace your damaged roof, less your deductible. Which means, RC will almost always be a better option, when available. However, the up front premium cost may not be ideal, so lets look at some examples.

    The general trend is for homeowner insurance policies to only offer ACV on roofs once they get to 10 years old and some carriers even when they are only 5 years old. A newer roof generally means a lower deductible for replacement cost and a lower premium.

    In this example, lets assume we are insuring a home with a coverage limit of $350,000, which is the cost to rebuild the home as it stands now. The roof itself is an architectural shingle, installed in 2010 or 16 years old. To replace that same roof now would cost an estimated $15,000. Insurance carriers will typicaly depreciate the roof about $600 per year. One carrier is offering a low $1,000 deductible, but only ACV coverage on the roof, the other carrier is offering full replacement cost, but a much higher percentage based deductible of 2%. Let’s look at how this price breaks down, when it comes to claim time.

    Carrier 1 with a $1,000 deductible will depreciate the value of the roof by $600 per year or $9,600. Carrier 2 offering replacement cost won’t depreciate the replacement cost of the roof at all. Next we need to consider the deductibles, Carrier 1 is much lower at $1000 and Carrier 2 deductible will be $7,000 based on a 2% wind/hail claim deductible. This means that the total payout for Carrier 1 will be $4,400 and Carrier 2 will payout $8,000! That’s $3,600 more compensation with Carrier 2 by going with replacement cost coverage.

    Below is a graphic showing this math and how taking the higher wind and hail deductible can net you more compensation.

    As you can see, although the higher deductible seems like a bad decision up front, the older your roof is, the more savings a higher deductible can provide. It’s always important to review with your homeowners insurance agent, discuss the ages of your roof and expectation come claim time.

    Live in Indiana, Kentucky, or Illinois? If you do, give me a call or email, I’m happy to review or assist you in making the right decision when protecting your most valuable assets.

  • The Good News About Getting A New Roof

    The Good News About Getting A New Roof

    Typically homeowners aren’t excited about getting a new roof. It’s a large project, even if insurance is covering the majority of the cost you still have deductible, the mess, and the decision on what kind of roof to install? However, there is some good news when getting a new roof that you should keep in mind when the time comes.

    The type of roof matters, so for this article we will be discussing the best options in Southern Indiana and Tri-State area. So, for most residential applications, I recommend the Owens Corning Duration shingles. However, if your choices are between 3Tab Shingles or Dimensional/Architectural shingles, always go with the latter. 3 Tab shingles are a dated option and do not last as long as a good dimensional product.

    Once you deal with the headaches, clean up, and finding nails for the next few years, remember the biggest positive!

    Homeowners should see a decrease in premiums or increased coverage after installing a new roof. Typical insurance carriers will depreciate the payout on a roof claim, due to the age. This depreciation can start as soon as 6 years old, so it’s important to know what kind of coverage you have. Now that you have a new roof, full replacement cost coverage should be available.

    In addition, its possible your premiums should go down, as the risk for a claim has decreased with the installation of a new roof. So, when weighing the decision on whether or not to spend the money on replacing the entire roof or just repair, check with your insurance agent first. Your home may now qualify for deeper discounts or at least better coverage.

  • Is my roof damage covered?

    Is my roof damage covered?

    Does your homeowners insurance currently cover the cost of replacing your roof if it’s damaged? Insurance companies are changing what is and isn’t covered when it comes to roofs, which is one of the most common claims in southern Indiana. It is typical that your carrier will only cover ACV, have a higher deductible, or out right not cover roofing related claims.

    Our number 1 tip for buying new homeowners insurance is to make sure your carrier provides Replacement Cost coverage or RC on your roof. Replacement Cost coverage means that if you were to have a claim, requiring replacement of your roof, your insurance carrier will payout the full cost, less your deductible. If it just says ACV, that means that that total cost will be depreciated and you won’t be made whole.

    In addition, many carriers are changing the deductible from that of other perils. For example, it’s common to have a $1000 deductible for a tree falling on the home, but if you have a wind/hail claim it may be a percentage of your homes value. This would mean you would be out of pocket thousands of dollars if this small detail is missed.

    At Tri-State Insurance Group we only recommend carriers that offer full Replacement Cost on the roof, because we realize how important it is. In some cases, where we just can’t get a carrier to offer RC, we make sure and educate the customer. Remember, notify your agent if you have a new roof, it can change your out of pocket expenses when it comes to claim time.

    Common Carriers and Roof Replacement as of 10/13/2025

    Safeco – 20 year old roofs

    Madison Mutual – 15 year old roofs

    Pekin – 6 year old roofs

    Auto-Owners – 10 year old roofs

    Openly – 10 year old roofs

    CELINA – 10 year old roofs

    The trend is that carriers are no longer carrying full replacement cost on older roofs. Big box carriers have even sent out letters telling homeowners to replace their existing roof or be dropped from their policy. If you have any questions or want to get a quote for a carrier offering replacement cost coverage, then give me a call.