Aged roof coverage

Aged roof coverage refers to a home insurance policy provision that limits reimbursement for roofs over a certain age, typically 15 years, to actual cash value (ACV) instead of replacement cost. Insurers such as State Farm and Allstate often apply ACV settlements for roofs older than 20 years, meaning depreciation reduces payout amounts, as reported by YourInsurance.info.

Policies with aged roof coverage exclude full replacement cost benefits for damage caused by wind or hail on roofs past the insurer’s age threshold. Homeowners with aged roof coverage receive claim payments based on the current depreciated value of roofing materials rather than their original installation cost.

Insurers determine “aged” status using documentation like inspection reports or permit records showing installation year. Aged roof coverage can increase out-of-pocket costs after severe weather events because typical asphalt shingles lose about 40% of their value after 15 years according to National Association of Home Builders data.

Some insurers deny new policies outright if the existing roof exceeds specific age limits; examples include American Family and Nationwide declining homes with wood shake roofs over 20 years old. Policyholders can sometimes upgrade from ACV to replacement cost coverage by providing proof of recent re-roofing within five years, subject to underwriting approval and premium increases averaging $100–$400 annually per Insurance Information Institute statistics.