Evolving Roof Requirements from Carriers

It’s no secret insurance carriers have been tightening their underwriting guidelines and coverage related to roof age, condition, and claims payouts. For independent agents in Ohio, these changes are expected to directly impact both new business and client retention. 

Earlier this year, OIA members alerted the association to evolving roof policy changes, often discovered only near renewal periods, leading to growing client (and agent) frustration. In response, the OIA team conducted an in-depth review of ODI rate filings from major carriers to better understand the shifting requirements. Listed below are some of the trends we detected, or you can reference carrier-specific information uncovered by OIA in this resource. 

Roof Age Matters More Than Ever 

Roof age has always been an important factor, but now it’s front and center for many carriers. Progressive, for example, applies a roof Loss Settlement schedule, and this coverage is applied to roofs at 11 years of age. Erie Insurance is flagging 3-tab shingle roofs over 10 years old for limited or functional replacement. Westfield has started applying depreciation to roofs after their 10th year, and Auto-Owners shifts to Actual Cash Value settlements once a roof reaches 16 years — unless a specific buy-back endorsement is secured. 

Agents should expect more friction around renewals for properties with roofs between 10 and 20 years old. Clients accustomed to Replacement Cost payouts may be surprised to learn that no longer applies, depending on where their roof age falls in the Replacement Cost threshold.  

The Shift Toward Actual Cash Value Settlements 

Along with the age of roof restrictions comes the move away from Replacement Cost toward Actual Cash Value (ACV). Actual cash value is calculated by taking the replacement cost value and then subtracting depreciation.  

Some carriers are implementing ACV once roofs reach a specific number of years of age. In the event of a claim, this change can dramatically reduce settlement amounts, often leaving homeowners with a hefty bill for additional necessary repairs.   

While some carriers are offering endorsements that allow clients to “buy back” Replacement Cost coverage up to certain age limits, these solutions often require upfront action and careful documentation. Proactive conversations now can prevent difficult conversations — and potential E&O exposure — later. 

Deductible Structures Are Evolving Too 

Wind and hail deductibles are another evolving piece of the puzzle. Rather than using the standard flat dollar amounts, many insurance carriers are implementing a percentage-based deductible specific to roof damage by windstorm and hail, often determined by the age and type of roof.  

For example, carriers like Westfield, for windstorm and hail damage, offer a range of deductible options: 

• Percentage Deductibles: These are based on a percentage of the Coverage A (dwelling) limit—typically 1%, 2%, 5%, or even 10%. 

• Premium Adjustment Deductibles and Higher Fixed-Dollar Deductibles: These alternatives provide fixed but higher dollar amounts for windstorm or hail deductibles. 

This shift is particularly relevant for agents in Ohio, where seasonal hail and strong storms are becoming more frequent. Helping clients understand the connection between roof condition and storm deductibles will be key to setting proper expectations. 

Matching Coverage May Leave Gaps 

Another area where surprises can occur is matching coverage for roofs and siding. Insurance policies typically only provide coverage to the damaged area – a common misconception with homeowners who assume their entire roof or exterior will be replaced after partial damage. Some companies, however, do have matching endorsements that can be added on for an additional cost. Westfield’s standard limit for matching materials is $20,000 — which may not fully cover larger properties or homes in HOA-regulated communities. 

Agents should take the time to review these limits with clients, especially for high-value homes or those with strict aesthetic requirements. 

Stricter Inspections and Renewal Scrutiny 

Finally, property inspections are becoming more rigorous. Carriers, such as Erie Insurance, are paying closer attention to roof condition during both underwriting and renewal. Homes with older 3-tab shingles, visible wear, or suspected installation issues may be flagged for surcharges, non-renewal, or limited coverage options. 

Encouraging clients to perform regular maintenance, document roof updates, and share inspection results can help safeguard their eligibility — and make renewal conversations easier for everyone involved. 

How Agents Can Get Ahead 

The evolving roof requirements present an opportunity for agents who stay proactive. Reviewing renewal books to identify at-risk roofs, educating clients about buy-back options and deductible structures, and guiding homeowners through potential upgrades can solidify client trust and loyalty. 

In an environment where roof-related claims and underwriting scrutiny are increasing, independent agents who lead the conversation will be positioned to grow — while those who react late may struggle with frustrated clients and diminished retention. 

By starting the conversation now, you can help your clients maintain the protection they expect, and help your agency maintain its competitive advantage heading into the rest of 2025. 

Agent Key Takeaways 

• Roof Age Impacts Coverage: Watch for homes with roofs older than 10–15 years, especially regarding Replacement Cost eligibility. 

• Replacement Cost vs. ACV: Educate clients early about buy-back options to avoid surprises at claim time. 

• Storm Deductibles Are Shifting: Older or non-hail-resistant roofs could mean much higher deductibles after a loss. 

• Matching Coverage Limits: Prepare clients for capped payouts on roof and siding matching. Educate yourself on the endorsements available with the companies you represent. 

• Renewal Inspections Are Increasing: Help clients document roof condition to support smoother underwriting and renewals. 

Disclosure 

We want to keep the conversation going with our members. If you’re seeing increased frustration around how carriers are implementing new roofing requirements, don’t hesitate to reach out. Our team may have resources to support your conversations with clients. 

The team at OIA reviewed rate filings submitted by carriers to the Ohio Department of Insurance as part of our research. Some of the data reflects recent updates, including letters sent to insureds this year, while other filings include older changes to coverage dating back to 2023. The information provided in this article and our guides is intended to help agents stay informed about these developments. 

About the Author

Jeannine Giesler, CISR, CPIA, and past President of the OIA Board of Directors, Foundation for the Advancement of Insurance Professionals, currently serves as Resource Center Advisor for the OIA. The purpose of the Resource Center is to contribute to building a comprehensive library of resource materials for our members. We pride ourselves on being the one-stop shop for all OIA members and work to solve every problem or situation you may come across.