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How Does Insurance Calculate Roof Replacement

So you’re in need of roof replacement, and you’ve filed an insurance claim. What’s next? Insurance companies determine payouts based on your roof’s cash value (ACV) or replacement cost value (RCV). The ACV is the depreciated value of your old roof. The RCV is the full cost to replace your roof with a new one of like kind and quality.

If you believe the insurance company’s offer is too low, you can contest it. Provide photos showing your roof’s condition, get multiple contractor estimates for replacement, and make sure the insurance provider’s measurements and roof details are accurate. Our Greenville roofing experts can help you with an accurate evaluation and estimate.

Roof Inspection

To determine if your roof qualifies for replacement under your insurance policy, an inspector will come out to thoroughly evaluate its condition. They will check things like the roof’s age, the type of material, and signs of damage or leaks.

The inspector will first check how long ago your existing roof was installed. Depending on weather and sun exposure, most asphalt or composite shingle roofs will last 15-30 years. If your roof is nearing the end of its expected lifespan, it’s more likely to be approved for replacement.

Estimation of Roof Replacement Cost

To determine how much they will pay for a roof replacement, insurance companies will calculate an “estimated replacement cost.” This is the amount they determine it will reasonably cost to replace your roof with a similar new one. They use several factors to calculate this estimate:

Materials Costs

Insurance companies calculate roof replacement costs based primarily on the materials used. The materials comprise the bulk of the total price for a new roof. Asphalt or composite shingles are the most common and affordable option. 

Insurance will estimate the cost per square (100 square feet) of shingles, factoring in the quality and brand. Higher-end architectural shingles with designer colors or styles will increase the price. Metal roofs like aluminum, copper or steel are more expensive. 

The insurance adjuster will determine the type of metal, its thickness or gauge, and any special coatings to determine the added cost over asphalt shingles. Due to their longevity, some insurance companies may offer discounts for metal roofs.

Labor Costs

Labor is a significant portion of a roof replacement job’s total cost. Roofers charge an average of $45 to $75 per hour, but rates vary greatly based on factors like:

replacing a roof is a significant investment, partly covered by insurance

Experience and Qualifications

More experienced roofers with certifications and a proven track record can demand higher pay. Roofers that have been in business longer typically have lower overhead costs, allowing them to charge less. Newer or less reputable companies may charge less, but the quality of work could suffer.

Job Complexity

A steeply pitched or multi-level roof, the number of fixtures like skylights or vents, and the roofing material all impact the difficulty and time required. More complex jobs with higher-end materials will cost more in labor. Basic asphalt shingle roofs are the most affordable, while metal, slate, or tile roofs require specialized skills and charge a premium. 


Roofing contractors are often busier during peak summer months and after major storms. They may charge slightly higher rates during their busy season to account for overtime pay and less available work crews. Some roofers offer discounts in the off-season to keep crews busy, so you may save by scheduling the work in spring or fall.

Policy Coverage Limits

Insurance companies consider several factors when determining how much they will pay for a roof replacement. Your policy’s coverage limits set the maximum amount they will pay towards any claim. The actual cash value of your roof, meaning its replacement cost minus depreciation, is also considered. 

Many homeowner’s policies limit roof coverage to a percentage of the total coverage amount, often around 5-15% of the policy limit. So if you have $200,000 in coverage, there may only be $10,000-$30,000 available for your roof. 

Reach Out to Greenville Roofing Today for Your Roof Inspection & Replacement Needs

When your roof shows signs of damage or leaks, it’s time to consider roof replacement. But how does your insurance company determine if your roof qualifies for replacement? Insurance providers typically base their decisions on the factors mentioned above.

Call Greenville Roofing today at (864) 479-4243 for a free roof inspection. We can assess the condition of your roof, check for any damage, and help you determine if roof replacement makes financial sense. We work with all major insurance companies and can guide you through the claim process to get your roof replacement approved and a new, high-quality roof installed on your home.

Let's get started with your FREE consultation.

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