Does Homeowners Insurance Cover a Roof Replacement in NC?
Usually yes if a storm did it, usually no if age did. But being covered and being paid in full are two different things, and in North Carolina there is a Supreme Court decision that explains most of the gap between the estimate and the check.
The short version
Two questions, not one
Almost every argument about a roof claim is one of these two being mistaken for the other.
Question one: is it covered? That turns on the cause. A roof damaged suddenly by wind, hail or a falling tree is normally a covered loss. A roof that has worn out is not, and age is the most common reason a roof claim is denied.
Question two: how much gets paid? That turns on the policy, and specifically on whether it settles at replacement cost or at actual cash value. On an older roof the difference between those two is usually bigger than the deductible.
Both questions were answered before the storm arrived. Which is the uncomfortable part of this page, and the reason the list below starts with the things you can no longer change.
What decides it
Five things, in the order they are settled
Ordered by when the outcome is fixed, earliest first. Most pages on this subject lead with what you can do next, which quietly implies the big items are negotiable.
1. Actual cash value or replacement cost, the single biggest number on the claim
Decided before the storm, by the policy you hold
Replacement cost pays what it takes to restore the roof with materials of similar kind at current prices. Actual cash value pays that figure minus depreciation. On a roof with years on it the gap between the two is not a detail, it is most of the money, and it was decided when the policy was written rather than when the storm arrived.
The catch. On a replacement cost policy the first check is still usually the depreciated amount less the deductible, with the rest held back and released after the work is finished and the final invoice goes in. An actual cash value policy has no second payment, so the held-back amount is simply not coming.
2. Cause of loss, what decides whether there is a claim at all
Decided before the storm, by the policy you hold
Policies cover sudden accidental damage from a named cause such as wind, hail or a tree coming down. They do not cover a roof wearing out. That distinction is the whole argument in most denied roof claims, because a storm arriving on an old roof produces damage that can honestly be described either way depending on who is describing it.
The catch. This is exactly why the condition of the roof before the storm matters, and why an inspection report that predates the weather is worth more than any amount of argument afterwards.
3. A roof-specific endorsement on the policy, the clause most people have never read
Decided before the storm, by the policy you hold
Some policies carry a separate schedule or addendum dealing only with the roof, which can change how a wind or hail loss is settled regardless of what the rest of the policy says. The endorsement at issue in the North Carolina case below was titled "Important Information About Your Roof Coverage" and said the insurer would deduct depreciation from the cost to repair or replace the damaged roof and reimburse the actual cash value of the damaged roof surfacing less any applicable deductible.
The catch. In that case the court read the roof addendum as governing the whole dwelling, not just the roof, so depreciation came off the non-roof repairs too. A clause you believed applied to the shingles reduced the payment on everything.
4. What you do before touching anything, the part that is genuinely in your hands
Decided after, by how the claim is handled
The NC Department of Insurance says to make a list of the damages and take clear pictures before you make any temporary repairs, to do what you can to stop further damage from happening, and to keep the receipts, because your reasonable expenses to protect your property are part of the loss and may be reimbursed. It also says to ask before discarding damaged materials.
The catch. The same guidance says not to make permanent repairs until the insurer has had a chance to inspect the damage and you have agreed on costs. Getting a permanent repair done quickly is the well-meant mistake that removes the evidence.
5. Who you let on the roof, and what you sign, where the storm-chasing happens
Decided after, by how the claim is handled
A major storm brings people into the Triangle who were not here the week before and will not be here the week after. NCDOI publishes specific guidance on protecting yourself from scams after a disaster, and the state's general advice is worth following to the letter when somebody turns up unprompted with a clipboard and an urgent tone.
The catch. Be particularly careful with anything that assigns your claim or your benefits to a contractor, and with any offer involving your deductible. If a document needs signing today, that urgency is information about the person holding it.
We will inspect it and put the damage in writing before anybody talks about a claim. Call (984) 224-7182.
The North Carolina case
Why the check is smaller than the estimate
These are figures from an actual North Carolina roof claim rather than an illustration, which is why they are the ones on this page.
In Accardi v. Hartford Underwriters Insurance Company, decided 28 February 2020, the Supreme Court of North Carolina held unanimously that a policy provision allowing depreciation of labor costs for roof repairs applied to all repairs to the dwelling. The court's reasoning was that the value of a house is determined by considering it as a fully assembled whole, so labor could not be carved out of depreciation without handing the policyholder a benefit they had not paid for.
Two things in that table are worth sitting with. The depreciation was six times the deductible. And the depreciation on labor, which is the part the case was actually about, was only $169.30 of it. The ruling mattered far less for the money in this one claim than for the principle it settled across every claim after it.
The other detail worth knowing is that the depreciation clause sat in an addendum about roof coverage, and the court applied it to the whole dwelling. A clause the homeowner reasonably read as being about shingles reduced the payment on everything else as well.
None of which is a reason not to claim. It is a reason to know what the first check is going to look like before it arrives, and to understand that on a replacement cost policy it is usually not the last one.
Questions
Roof insurance questions
What homeowners ask us, and the honest answers including the ones where the answer is that we are not the right people to ask.
Does homeowners insurance cover a roof replacement?
It covers a roof damaged by a sudden accidental cause such as wind, hail or a falling tree. It does not cover a roof that has worn out, and age is the most common reason a roof claim is denied. Being covered is also a separate question from being paid in full: whether the policy settles at actual cash value or at replacement cost decides how much of the figure actually reaches you, and on an older roof that difference is usually larger than the deductible.
Can an insurer depreciate labor in North Carolina?
Yes. In Accardi v. Hartford Underwriters Insurance Company, decided 28 February 2020, the Supreme Court of North Carolina held unanimously that a policy provision allowing depreciation of labor costs for roof repairs applied to all repairs to the dwelling. The court's reasoning was that the value of a house is determined by considering it as a fully assembled whole, so labor could not be carved out of depreciation without giving the policyholder a benefit they had not paid for. This is general information about a published decision and not legal advice; a question about your own policy is one for a lawyer or for NCDOI.
Why was the check so much smaller than the estimate?
Depreciation and the deductible, in that order of size. The figures from the Accardi claim are a good illustration because they come from the record rather than from an example somebody made up: repairs estimated at $10,287.28, depreciation of $3,043.92 deducted, a $500 deductible applied, and $6,743.36 paid. On a replacement cost policy a further payment can follow once the work is done and the final invoice is submitted.
What is recoverable depreciation?
The part of the depreciation a replacement cost policy will pay back after the work is actually completed and documented. The sequence is that the insurer pays the depreciated amount first, the work gets done, the final invoice and proof of completion go in, and the withheld amount is released up to the covered replacement cost. On an actual cash value policy there is no second payment to recover.
Who handles a wind or hail claim in North Carolina?
Your primary homeowners insurer investigates and adjusts windstorm and hail claims even if you hold a separate windstorm or hail policy, according to NCDOI. The same guidance notes that after a large storm the insurer will likely be dealing with a great many claims at once, so delays are normal and not in themselves a sign that something has gone wrong.
Should I file a claim for a few missing shingles?
That is a judgment call rather than a rule, and it turns on how the repair cost compares with your deductible. A small repair on a roof with a high or percentage-based deductible can cost less than the deductible, in which case filing achieves nothing except putting a claim on your record. Getting the damage measured and priced first tells you which situation you are in. We will put that in writing after an inspection whether or not a claim follows.
Does a new roof lower my premium?
It can affect how an insurer underwrites and renews the policy, because roof age is one of the things they look at. Whether it changes your premium, and by how much, is a question only your insurer or agent can answer for your policy. We are roofers, not an insurance agency, and we are not going to guess at a number that affects what you pay.
Keep reading
Related guides and calculators
Claims, storms, and what a replacement actually costs here.
For the gap between what the policy pays and what the roof costs.
Free on-site inspection
Get the damage documented before you file
We get on the roof, photograph what is actually there, and hand you a written report with a price. No charge, and no obligation to book the work with us. If the roof has years left in it, that is what the report will say.
