Fortify Roofing Alternative To Replacing Your Roof

Many North Texas homeowners are surprised to learn how little roof insurance may actually pay once depreciation and deductibles are applied. The example below shows how a typical claim can result in little to no payout — even when damage is approved.

• Home value: $500,000

• Roof type: Asphalt shingle

• Roof age: 10 years

• Roof replacement cost: Approximately $20,000

Most insurance companies depreciate asphalt shingle roofs over time. At 10 years old, many roofs are depreciated by approximately 50%.

• Replacement cost: $20,000

• Depreciation (50%): –$10,000

• Actual Cash Value (ACV): $10,000

Most Texas policies now use percentage-based wind and hail deductibles.

• Typical wind/hail deductible: 2%

• 2% of $500,000 = $10,000 deductible

• ACV before deductible: $10,000

• Deductible: –$10,000

Insurance payout: $0
Homeowner out-of-pocket cost: Approximately $20,000

Although the claim may be approved, depreciation and deductibles often eliminate the payout. Insurance companies increasingly rely on aerial imagery and roof age when evaluating claims, renewals, and coverage.