Important things you need to know about roof hail damage

Last updated: 2026-10-28 by Ted Sellers, Owner

Replacement Cost Value vs. Actual Cash Value

When it comes to insurance for your roof, your homeowner’s policy is designed to protect you against a variety of types of losses, such as damage from a tree falling, weight of snow and ice, fire, lightning, ice dams, wind and hail.

However, how you’re protected from a loss depends on whether you have actual cash value coverage or replacement cost value coverage. Let’s take a look at the difference between the two:

The first way is called replacement cost insurance. Basically, you have replacement cost coverage. The insurance company will pay to put you back where you were before the loss. If your home office is damaged, it’s going to be repaired to the way it was before the damage with materials similar quality to what you had before.

Meanwhile, the ACV of your roof is what your roof is worth today, taking into consideration things such as its age, condition and type of roofing material. Before your insurance kicks in to help cover the cost, you’ll be required to pay a deductible.

IMPORTANT THINGS YOU NEED TO KNOW ABOUT ROOF HAIL DAMAGE INSURANCE CLAIMS

So, for example, let’s say that you have a 10 year old roof, which is damaged in a storm and your entire roof needs to be replaced. The cost to replace the roof is $12,000 and it’s halfway through, it’s anticipated life of 20 years. Replacement cost pays for the full $12,000, the cost to replace the roof with the same type of shingles that you have now.

Actual cash value only pays $6,000, which is the replacement cost of the roof minus 10 years of depreciation. That’s a big difference. It is because of this that roof replacement cost value coverage is the more popular choice, since it provides more protection if your roof is damaged by a covered loss.

Insurance valuation methods tend to be hard and confusing to determine, based on your individual needs and circumstances. As such, it’s best to speak with your insurance agent about what type of roof valuation method is best for you.

They will be able to review your existing policy and best assist you in determining your position with your insurance company especially when filing for a claim.

Homeowner’s insurance

Homeowner’s insurance generally falls into two categories: property damage and liability. Property damage insurance protects the investment you’ve made in your home in the case of unexpected events like fire or natural disasters. It also provides coverage for your belongings, for example in the event you are burglarized. Liability insurance, on the other hand, protects people who may be injured while visiting your property.

When you borrow any amount of money to buy a home, your mortgage lender will insist that you purchase homeowner’s insurance that’s sufficient to cover the amount of your loan. While lenders mandate homeowner’s insurance to protect themselves, the best homeowner’s insurance policy will also protect your financial interests.