The single biggest insurance trend of 2026 is roof-age scrutiny. Major
AZ carriers tightened underwriting at policy renewal — many homes with
roofs over 20 years old are getting non-renewal letters or being
quietly switched from RCV to ACV coverage.
Here's why, what's happening, and what to do about it.
Why carriers are doing this
Three trends collided in 2024–2025:
- AZ hail loss ratios hit 1.34 in 2024 (carriers paid $1.34 in
claims for every $1.00 in hail premium)
- Roof replacement costs rose 31 % between 2020 and 2025
- Modeled climate volatility in NAZ projections increased
The math doesn't pencil out for carriers on old roofs. Their
response: limit exposure on older roofs through age-based policy
actions.
What's happening at renewal
Three flavors of action you might see:
1. Quiet ACV switch
Your renewal declarations page shows the same coverage A and same
deductibles, but adds an endorsement for "actual cash value (ACV)
on roof replacement" if your roof is over 15–20 years old.
Effect: instead of getting paid replacement cost on a covered claim,
you get the depreciated value. A 20-year-old roof depreciates to
about 30–45 % of replacement cost. On a $20,000 roof, you'd
receive $6,000–$9,000.
2. Cosmetic damage exclusion
The policy adds language excluding "cosmetic" damage to roofs.
Definition is vague enough that carriers can apply it to anything
short of an active leak.
Effect: hail damage that doesn't immediately leak gets denied as
cosmetic. Tile roofs especially affected.
3. Non-renewal
The carrier sends a notice 30–60 days before renewal stating they
will not renew. Reason often cited: "underwriting decision" or
"roof age."
Effect: you have to find a new carrier. Often at higher premium
because you're a "non-renewed" risk.
Which carriers are doing what (2026 patterns)
| Carrier | Pattern |
|---|---|
| State Farm | ACV at 15+ yrs on shingle, 20+ on tile |
| Allstate | Cosmetic exclusion at 15 yrs, non-renewal at 25+ |
| Farmers | ACV at 15+ yrs, no exceptions |
| USAA | RCV maintained — but premium increases ~9 % at 15+ |
| Liberty Mutual | Non-renewal at 20+ yrs (most aggressive) |
| Travelers | ACV at 15+ on shingle, RCV maintained on tile/metal |
| Progressive | Cosmetic exclusion at 15+, ACV at 20+ |
| Auto-Owners | RCV maintained — most homeowner-friendly |
| Chubb | RCV maintained for high-value homes |
| Pure / Cincinnati | RCV maintained — small-market specialty |
Auto-Owners and small specialty carriers (Cincinnati, Pure) have
the most flexible 2026 policies. They're harder to qualify for
(often need high credit + claim-free history) but worth the
effort if your roof is 15+ years old.
What to do
If your roof is 0–10 years old
Nothing. You're fine. Maintain documentation of install date and
keep records of any repairs.
If your roof is 10–15 years old
Pull your declarations page. Confirm RCV. Get a roof inspection
every 2 years. Save photos and reports.
If your roof is 15–20 years old
- Pull your policy and check for ACV / cosmetic exclusion
endorsements
- Get a current inspection report
- Shop carriers — quote at least 3
- Consider replacing the roof if you're at 18+ years; the cost
difference between maintaining ACV coverage on an old roof and
getting RCV on a new one is small over 5 years
If your roof is 20+ years old
- Replace it. Seriously.
- If you can't replace it now, get an inspection and budget for
replacement within 18 months
- Talk to your agent about temporary specialty coverage
- Document everything — every repair, every inspection
What insurance treats as a "new roof"
For RCV restoration after replacement, carriers want:
- Permit pulled
- AZ ROC licensed contractor
- Final inspection passed
- Manufacturer warranty registered
- Photos of completion (most carriers send their own inspector)
Your carrier may also require:
- Hail-resistant Class 4 shingle (for premium discount)
- Cool roof rating
- Specific material (some carriers don't insure wood shake at all)
Premium impact of new roof
Replacing a 20+ year roof with new typically:
- Restores RCV (the big win)
- Reduces premium 8–15 % for the new-roof discount
- Removes cosmetic exclusion at next renewal
- Class 4 shingle adds another 5–25 % discount on hail premium
On a $2,400/yr policy, the discounts can mean $250–$500/yr —
paying back a $20,000 roof investment in insurance savings alone
over 40+ years.
What if I can't afford to replace?
Three options:
- Roof loan / financing — most NAZ contractors offer 60–84 month
financing at 7–12 % APR
- Reroof on top (rare in NAZ — most carriers won't accept) —
cheaper but uncommon
- Specialty insurance — non-admitted carriers cover older roofs
at higher premium
The math usually favors replacement over indefinite ACV coverage.
A claim on a 25-year-old shingle roof under ACV pays maybe 25 % of
replacement — meaning even after deductible, you're spending $15k
out of pocket on a $20k repair. That's most of a new roof.
Get matched with a NAZ roofer for current pricing through the wizard.