How to Get Homeowners Insurance With a Bad Roof

Any time you’re getting a quote for homeowners insurance, one question the company will always ask is the age of your roof. The condition of your roof is so important to insurers because it’s your home’s first line of defense against things like rain, wind, and hail. A home with an old or poorly maintained roof is more likely to suffer severe damage in the event of a natural disaster.

Because of this, you’ll probably have a hard time insuring a home with a bad roof, but it’s not impossible. In this article, we’ll explore options for those who are afraid they can’t get homeowners insurance because of their roof. 

To home insurance companies, a roof becomes “old” or “bad” after about 15 to 20 years. Some roofing materials, such as metal or clay tile, have a longer lifespan, but most standard shingle roofs cap out at 20 years old. Even so, some insurance companies will cover a 15 to 20-year-old shingle roof if you’re willing to pay more for your premium. 

If your roof is in the 20+ age range, you’ll probably have to get high-risk homeowners insurance. Your home is considered a risk because your roof would be pretty easy to damage after so many years. High-risk insurance costs up to 50% more than standard homeowners insurance, and it usually includes less coverage for the higher price. 

As an example of how high-risk insurance gives you less coverage, most insurance companies will only insure an old roof for its actual cash value. Actual cash value is how much it would cost to replace your roof minus its depreciation in value over the past 20+ years. 

Here’s how to figure out the actual cash value of your roof:

For example, say your home has a shingle roof with an expected lifespan of 20 years, and it was built 15 years ago. Replacing a shingle roof in 2022 would cost around $8,000. So, you multiply $8,000 by 75% (0.75), the percentage of your roof’s lifespan that has already passed. That tells you that your roof has depreciated $6,000 in value. Now, subtract $6,000 from $8,000 to get your roof’s actual cash value: $2,000. 

What that means is that, if your roof is completely destroyed, your insurance will pay no more than $2,000 for a roof replacement. That leaves you paying the other $6,000 out-of-pocket. And that’s after you paid up to 50% more on your insurance premium than you would for standard homeowners insurance. 

So, even though you can get homeowners insurance with an old roof, it might make more financial sense, in the long run, to go ahead and replace your roof so you can get better insurance at a lower rate. 

Even if your home is already insured, your insurance company can drop you because of issues with your roof, whether it crosses that 15-year threshold and gets too old or falls into disrepair because you haven’t maintained it properly. 

If your homeowners insurance is cancelled because of your roof, you have two options:

Your insurance company is less likely to drop you because of your roof if you keep up with proper roof maintenance. Get a professional roof inspection once a year, and repair any minor damage or issues that come up ASAP to prevent major problems that might cause your insurer to cancel your homeowners insurance. 

If you can show a consistent record of proper maintenance and passing roof inspections, your insurer might even be willing to maintain your policy once your roof reaches 15 to 20 years old. 

In insurance, an exclusion is something your policy doesn’t cover. Some homeowners insurance policies will include certain roof exclusions. You’ll have to read through your policy documents or talk to your insurance agent to find out if any of these exclusions apply to your insurance.

Roof exclusions in homeowners insurance policies are often based on factors such as:

Every insurance company is different, but in general, you can expect most standard insurers to have certain requirements regarding your roof. The most common roof requirement is that shingle roofs be less than 15 years old. That’s why it’s harder to find insurance once your roof gets older than that. 

Some home insurance companies require a roof inspection before they’ll agree to cover your home, especially for older homes. If your roof fails an inspection, you’ll likely have to get it repaired or replaced before anyone will insure your home.