Instead of paying the full cost to replace the roof (replacement cost valuation), the insurance company uses this schedule to pay only a fixed percentage determined by the roof's age and the type of shingles used. Essentially, the older your roof gets, the less your insurance company is required to pay in the event of a claim. This leaves you to cover the growing financial gap out of your own pocket.
The Older Roof in Tyler
Sarah is a homeowner in Tyler and has a home insurance policy that she’d carried for a decade. When a hailstorm totaled her 12-year-old shingle roof, she expected her replacement cost coverage to handle the $18,000 bill. However, Sarah didn't realize her company had moved her to a roof payment schedule at her last renewal.
According to the schedule in her policy, a 12-year-old shingle roof was only eligible for 45% of its replacement value. After her deductible was applied, the insurance company sent her a check for less than $7,000. Sarah was left staring at an $11,000 gap that she had to fund herself.
How the Schedule Works
A Roof Payment Schedule is essentially a pre-defined depreciation table built into your homeowner’s policy contract. It removes the negotiation out of a claim and replaces it with a fixed percentage based on the age and material of your roof.
- The Percentage Drop: Most schedules start at 100% (minus your deductible) for a brand-new roof. By year five, it could drop to 80%. By year fifteen, you might be lucky to get 25%.
- Material Matters: Metal and tile roofs usually have a slower depreciation schedule than asphalt shingles because they are expected to last longer, but they are not immune to the cuts.
- Non-Negotiable: Because the table is part of your signed contract, you cannot argue with the adjuster about the condition of the roof. The only thing that matters is the year it was installed.
Why Do Insurance Companies Use Schedules?
Texas weather is expensive. Insurance carriers use payment schedules to lower their catastrophic risk. By shifting the cost of an aging roof onto the homeowner, they can offer lower monthly premiums.
Many Texas homeowners are moved onto a roof payment schedule during their annual renewal without a clear warning. It often appears as an endorsement or a small change in the loss settlement section of the declarations page. If you or your agent aren't looking for it, you won't know it’s there until the hail hits and the check comes back small.
Don't Let the Calendar Kill Your Coverage
A roof payment schedule isn't necessarily bad insurance, but it is limited insurance. If you have a schedule, you need to set aside cash every month to cover the gap or purchase a roof indemnity plan that pays you cash for roof damage.
Is your coverage shrinking? Most Texans are unaware their policy has an expiration date on full protection. Our personalized risk assessment looks at your specific loss settlement provisions to see if you're on a schedule.