The ugly
The increase in the frequency of severe storm events, along with a higher concentration of homes being built in hail-prone regions, has allowed the roofing industry to take off. Some companies quickly replace asphalt shingles with a new asphalt shingle roof—often without upselling to Class 4. For years, the insurance industry has paid outright for these roofs.
For years, many storm-related roof replacements were paid with relatively manageable deductibles (often $1,000–$5,000). That dynamic has shifted.
Percentage wind and hail deductibles are now common
Many carriers have moved from flat deductibles to percentage-based wind and hail deductibles, such as 1%, 2%, or even 5%.
Example: If your home is insured for $500,000:
- 1% deductible = $5,000
- 2% deductible = $10,000
- 5% deductible = $25,000
Depreciation schedules may further reduce reimbursement.
On top of percentage deductibles, many policies now apply roof depreciation schedules, especially on less resilient roof types or older roofs. That means the carrier may pay only a portion of the replacement cost based on the roof’s age and condition.
Using the same $500,000 example with a 2% wind and hail deductible:
- Deductible: $10,000
- If depreciation reduces coverage to 80–90% of replacement cost, the homeowner’s out-of-pocket responsibility can climb significantly beyond the deductible alone.
Carriers continue to scrutinize asphalt shingles.
Carriers are underwriting roofs with a fine-tooth comb, and that’s unlikely to reverse as severe convective storm activity continues. Asphalt shingles are particularly in the spotlight because they’re so widespread—and because performance concerns compound as the roof ages.
There’s also a sustainability factor: asphalt shingles account for an estimated 11–13 million tons of waste in the U.S. each year. That raises long-term questions about disposal and recycling.
For some homeowners, continuing to use asphalt shingles is the pathway forward. The affordability of asphalt shingles makes it difficult to make a change—and that’s okay. The key is going in with clear expectations:
- Coverage may become more restrictive as the roof ages.
- Out-of-pocket costs in a claim scenario may increase.
- Policy terms may include depreciation schedules in addition to percentage deductibles.
If you choose asphalt shingles, consider ways to increase resilience, such as aligning upgrades with the IBHS FORTIFIED Roof standard and selecting products that perform better in independent testing.
