New Roof Home Owners Insurance Savings Guide for Texans

In Brief: Insurance Savings from Roof Upgrades

Many insurers price a home partly on the age and condition of its roof, so replacing an old roof can lower your premium, but there is no standard percentage. The amount depends on the insurer, the roof age it had on record, the roofing material and where you live. For example, replacing a roof that is nearly 20 years old is more likely to change your rate than replacing one that is only a few years old. Insurers generally view an aging roof as a growing risk.

Expected Savings for Homeowners

How much a new roof changes your premium depends on several variables, and some homeowners see little change. Factors influencing these savings include:

• Roofing Material: Choices in roofing material can dictate potential discounts. For instance, robust materials like metal, which offer extended longevity and superior home defense, can command higher discounts.
• Location-Related Risks: The area in which a home is situated can play a significant role in insurance savings, as homes in zones vulnerable to environmental hazards like windstorms and hail may face smaller discounts.
• Insurance Provider Variance: Each insurance firm has its methodology for evaluating a new roof’s impact on insurance risk, resulting in a range of discount offers.

Roof Age and Its Impact on Insurance Premiums

Nearly all insurance carriers assess the age and condition of your roof when determining rates. Roofs that are newer and in prime condition are considered lower-risk, thereby affording homeowners better savings. As roofs age, they become pricier to insure, and an excessively old roof may compel a replacement to retain coverage.

Coverage for Aging Roofs

Insuring a roof that’s close to two decades old may pose challenges. Some insurers require inspections for older roofs, often those approaching 20 years, to continue coverage. Failure to pass such an inspection may necessitate a roof replacement, or risk termination of the policy.

Homeowners Insurance and Roof Replacement

Your homeowners insurance is designed to cover roof replacements if damage results from an insured event, such as natural disasters or unexpected accidents. However, issues due to neglect or general wear and tear will likely be out-of-pocket expenses. Home insurance typically covers damages caused by:

• Severe weather-related wind
• Hail and heavy rainfall
• Lightning strikes and fires
• Debris falling from above, such as tree limbs or airplane parts
• Acts of vandalism or civil unrest
• The burden of accumulated ice, snow, or sleet

The severity of roof damage will determine whether a repair or complete replacement is warranted.

What Deductibles to Expect

Many Texas homeowners policies have a separate wind and hail deductible based on a percentage of the home’s insured value. For instance, with a home insured at $300,000 and a deductible of 1% for wind and hail damage, the homeowner would pay $3,000 before insurance payments kick in.

The Cost of Roof Replacement in Texas

Roof replacement costs vary widely with the size and pitch of the roof, the material and local labor costs, so get more than one written bid. On a covered claim, you pay your deductible first and your insurer pays the rest of the covered cost under your policy terms. Whether your policy pays replacement cost or actual cash value for the roof makes a big difference, as explained below.

Insurance Roof Ratings

Roofs receive ratings based on their resilience, with ratings like the UL 2218 impact test determining their ability to withstand impact. Under UL 2218, steel balls from 1.25 to 2 inches in diameter are dropped from 12 to 20 feet depending on the class, and the shingles are checked for cracks, according to Asphalt magazine. Class 4, the highest rating, uses a 2-inch ball. IBHS research notes the balls are dropped from heights meant to match the energy of a hailstone of the same size. The Texas Department of Insurance says a Class 4 roof covering would receive the highest premium credit, but each insurance company sets its own discount amount.

Choosing Roof Shape and Materials Wisely

Your roof’s design and construction materials heavily influence insurance premiums. While more durable options may be costlier upfront, they offer enhanced protection and potential insurance savings. Shapes and materials include:

• Flat Roofs: Less favored due to water retention issues.
• Gable Roofs: Allow water runoff but can be wind-vulnerable.
• Hip Roofs: Celebrated for their wind resistance and superior drainage, leading to lower insurance costs.

Material-wise, consider:

• Wood: Prone to rot and fire damage, leading to potentially higher premiums.
• Asphalt Shingle: Popular and budget-friendly, but with a limited lifespan.
• Slate or Tile: Excellent longevity and fire resistance, albeit at a higher initial cost.
• Metal: Celebrated for its durability and elemental resistance, often resulting in insurance preference.

Replacement cost vs. actual cash value roof coverage

A new roof matters for more than your premium. It also affects how much a future claim pays. The Texas Department of Insurance home insurance guide gives a simple example. If a new roof costs $10,000 today and your deductible is $2,000, a replacement cost policy would pay $8,000. An actual cash value policy subtracts depreciation, so on a 10-year-old roof the actual cash value might be $7,000, and after the deductible the company would pay $5,000. Your out-of-pocket cost would be $5,000 instead of $2,000.

Some Texas policies pay actual cash value only for the roof, or use a schedule that depreciates the roof based on its age. When you replace your roof, ask your agent whether your policy pays replacement cost for the new roof and whether any roof-specific endorsements apply.

How to get an impact-resistant roof credit in Texas

Hail is the biggest reason Texans look at impact-resistant roofing. The Insurance Information Institute reports that Texas had 902 major hail events in 2025, more than any other state. TDI explains that roofing materials tested for impact resistance are classified as Class 1, 2, 3 or 4, and that each insurer decides:

• How much of a discount each class receives
• Which test criteria it accepts
• How the roofing materials must be labeled
• What paperwork the contractor and homeowner must submit

TDI publishes an Impact-Resistant Roofing Installation Form (PC068) that a roofing company can complete to show that the roof covering installed meets UL 2218 and its impact class. The form tells homeowners to keep the original and send a copy to their insurance company. It also asks whether the product packaging shows the UL classification, manufacturer, date of manufacture and brand name, and whether a label was given to the owner. Keep that label.

Regulators are encouraging these credits. In a 2026 bulletin, TDI encouraged insurers writing residential property coverage in Texas to develop meaningful, actuarially supported premium discounts for loss mitigation, including impact-resistant roofing and building or retrofitting homes to standards like IBHS FORTIFIED Home.

FORTIFIED Roof

FORTIFIED is a voluntary construction and re-roofing program from the Insurance Institute for Business & Home Safety. The FORTIFIED Roof standard requires features such as a sealed roof deck to keep water out if shingles blow off, and ring-shank nails in an enhanced pattern, which IBHS says nearly doubles the roof’s strength against wind. If you’re replacing your roof anyway, ask roofers whether they can build to the FORTIFIED standard and ask your insurer whether it offers a credit for the designation.

Before you replace your roof: a checklist

1. Call your agent first. Ask which roof materials and impact classes earn a credit and what proof the insurer needs.
2. Get several written bids on company letterhead with clear contact information.
3. Confirm the product’s UL 2218 class and keep the packaging label.
4. Ask the roofer to complete Form PC068 if you’re installing impact-resistant materials.
5. Send your insurer the paperwork, including the installation date, so your policy shows the new roof age and material.
6. Review your deductible and roof coverage at your next renewal.

Texas rules on roofers and deductibles

After hail storms, contractors arrive quickly, and some make offers that are illegal in Texas. The Texas Department of Insurance explains that it is illegal for a contractor to waive your deductible or help you avoid paying it, including by inflating an estimate or offering a rebate. Your insurer can ask for proof that you paid your deductible, such as a canceled check or credit card statement. TDI also suggests using a local company, checking references, being wary of door-to-door contractors and getting more than one bid.

An example

Consider a homeowner in Plano with an 18-year-old composition shingle roof. Before replacing it, she calls her agent and learns that her insurer offers a credit for Class 4 shingles with proof of installation, and that her current policy pays actual cash value for the old roof. She chooses a Class 4 product, keeps the packaging label, has the roofer complete Form PC068 and sends it with the invoice to her insurer. At renewal, her policy shows a new roof age and material. The exact change in her premium depends on her insurer’s rating plan.

Frequently asked questions

Will a new roof automatically lower my premium?

Not automatically. You need to tell your insurer, and the effect depends on the company’s rating plan, your location and the roof material.

Is a Class 4 roof worth the extra cost in Texas?

It depends on your insurer’s credit, how long you plan to stay in the home and your hail risk. Get the credit amount in writing from your insurer before choosing materials.

Where can I learn more about Texas roofs and insurance?

See our companion page on new roof home insurance savings for Texas homeowners, our article on why home insurance is so expensive in Texas and our homeowners insurance page.

Roof Maintenance Equals Savings

Maintaining your roof in stellar condition is essential. Address minor issues promptly, employ reputable contractors, and perform regular maintenance. This diligence not only prolongs your roof’s life but can also yield savings on insurance premiums.

Simplifying Roofing and Insurance

Navigating the intricacies of roofing and insurance can be complex, yet that’s where Texas Insurance Resources steps in; Working with multiple insurance carriers, we compare coverage for our clients and ask about discounts for new roofs.

Talk with an agent or use our online quote tool for a no-obligation review of your insurance needs.

Sources

• Home insurance guide, Texas Department of Insurance
• Products qualifying for impact-resistant roofing credits, Texas Department of Insurance
• Impact-Resistant Roofing Installation Form (PC068), Texas Department of Insurance
• Commissioner’s Bulletin B-0008-26: Premium discounts for loss mitigation, Texas Department of Insurance
• Is it OK for a contractor to waive my deductible?, Texas Department of Insurance
• Relative Impact Resistance of Asphalt Shingles, Insurance Institute for Business & Home Safety (IBHS)
• A closer look at roof impact testing, Asphalt magazine
• FORTIFIED Roof, FORTIFIED, a program of IBHS
• Facts + Statistics: Hail, Insurance Information Institute (Triple-I)
• Understanding your insurance deductibles, Insurance Information Institute (Triple-I)