Roof payment schedules: what they are and why homeowners should pay attention
If you’ve ever had roof damage from a storm, you know the stress that comes with filing a claim and figuring out what your insurance will actually cover. Most people assume, “My policy has replacement cost, so they should pay to replace the whole roof.”
Unfortunately, that’s not always the case anymore.
More and more insurance companies are adding something called a Roof Payment Schedule to their policies — and it can make a huge difference in how much you’re paid after a loss. A lot of homeowners don’t even realize it’s in their policy until they get a check that’s thousands of dollars lower than expected.
Let’s break this down in simple terms.
SO… WHAT EXACTLY IS A ROOF PAYMENT SCHEDULE?
Think of it like a depreciation chart for your roof. Instead of paying whatever it costs to replace the damaged roof, the insurance company pays a percentage of the replacement cost based on two things:
- How old your roof is
- What type of material it’s made out of
As your roof gets older, the percentage the insurance company pays goes down. That means your out-of-pocket costs go up.
How do these schedules usually work?
Here is an example.
Every insurance company has its own version, but they all follow the same idea — newer roofs get paid at close to 100%, and older roofs drop off over time.
Here’s a simple, general example:
- Brand new roof: 95–100% of replacement cost
- 5-year-old roof: 75–90%
- 10-year-old roof: 50–70%
- 15-year-old roof: 25–55%
- 20+ years old: Sometimes only 20–40%
So, if replacing your roof costs $15,000 and your schedule says your 10-year-old shingles are worth 60%?
Your insurance may only pay $9,000, and you’d be responsible for the rest.
Most people don’t expect this — especially when they believe their policy covers “full replacement.”
WHY ARE INSURANCE COMPANIES DOING THIS?
In short: cost control.
Roofs are expensive, storms are becoming more frequent, and insurers have been looking for new ways to limit what they pay out. Roof payment schedules are one of the tools they now use.
But the problem is… homeowners aren’t always aware of these changes. Sometimes they’re slipped into the policy during renewal, tucked into an endorsement that no one really reads.
HOW CAN YOU PROTECT YOURSELF?
- Read your policy — especially the endorsements – Look for terms like “roof schedule” or “actual cash value for roof surfaces.”
- Know your roof’s age.
- Keep your roof well maintained and keep proof and receipts to better help your claim later.
- Ask your insurance sales agent to explain your roof coverage, in writing.
- Consider buying coverage that restores the full replacement cost (RCV).
- If you are receiving a lot of “discounts” on your premium, ask your insurance sales agent “WHY?!” There is always a catch.
*Please note that the above information is only for educational purposes only. Every case and every insurance policy is different. Please give us a call if you have any questions or concerns in regard to a denied or underpaid claim.
Guillermo Lopez, Esq.
