Short answer: Before hail season, check three parts of a Texas homeowners policy. First, whether wind and hail damage has its own deductible, often a percentage of the dwelling limit. Second, whether the roof is paid at replacement cost or actual cash value, which subtracts depreciation. Third, whether a cosmetic-damage exclusion applies, which is common when you get a credit for an impact-resistant roof.
1. The wind/hail deductible
The Texas Department of Insurance's roof guide advises asking your agent whether the deductible for wind and hail is different from the deductible for other damage. If it is, a storm can cost you more out of pocket. Percentage deductibles are figured on the dwelling limit, not the repair bill. A 2% deductible on a $400,000 dwelling limit is $8,000. Check the dollar figure on your declarations page.
2. Replacement cost or actual cash value
TDI's home insurance guide explains the difference:
- Replacement cost pays to repair or replace at current prices, minus the deductible.
- Actual cash value (ACV) pays replacement cost minus depreciation, then subtracts the deductible.
TDI's example uses a 10-year-old roof with a $10,000 replacement cost and a $2,000 deductible. Replacement cost pays $8,000. ACV might pay $5,000, leaving you to cover $5,000 instead of $2,000. TDI also notes that as roofs age, some companies switch roof coverage to ACV at renewal, and that a roof in poor condition might not be covered at all. Your company should tell you when it changes your coverage.
3. Cosmetic hail damage
Some policies exclude cosmetic hail damage, meaning dents that change how the roof looks without letting water in or keeping the roof from working. The Texas Windstorm Insurance Association's Form 420, for example, applies when a policyholder gets a credit for a hail-resistant roof. It excludes cosmetic hail damage but still covers hail damage that lets water through or makes the roof fail at its job. Private insurers use their own versions, so read yours.
How replacement cost claims are paid
With replacement cost coverage, TDI says the insurer usually pays in two checks: the first after the adjuster's estimate, and the rest after repairs begin.
Bottom line
Look up your wind/hail deductible in dollars, check how your roof is settled, and ask about cosmetic exclusions before you buy an impact-resistant roof for the discount. See TWIA explained for coastal homes.
Questions? Contact Alishahi Insurance or call (877) 711-4545. Vea insurance in Texas.
Frequently asked questions
Is the wind/hail deductible different in Texas?
It can be. TDI advises asking your agent; percentage deductibles are based on the dwelling limit.
What is an ACV roof in Texas?
Actual cash value coverage pays replacement cost minus depreciation, so older roofs get less.
Can my insurer switch my roof to ACV?
TDI says some companies switch to ACV as roofs age, and they should tell you when coverage changes.
What is cosmetic hail damage?
Damage that changes the roof's appearance without letting water in or causing it to fail; some policies exclude it.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.