Home insurance isn’t what it used to be — and that’s not always a bad thing. As repair costs rise and weather patterns shift, many carriers have updated how they handle roof coverage, water damage, and loss settlement. Understanding these updates can help you get the most value from your policy — and avoid unpleasant surprises later.
At Mindi McKinley Insurance Services, we help clients across Texas stay ahead of these changes, so their coverage fits their real-world risks and rebuild costs.
Industry Trends to Know
- Rising rebuild costs mean you may need to update your dwelling limit — the average cost to rebuild in Texas is now $175–$250 per sq. ft.
- Carrier changes to roof coverage: more companies now use “scheduled roof settlements” to reduce payouts on older roofs.
- Water losses are now the #1 cause of home claims in many regions — but coverage varies depending on how the water got there.
What “Schedule for Loss Settlement on Roof Coverage” Means
Many carriers have shifted from full replacement cost coverage to a scheduled or actual cash value (ACV) approach based on roof age and material.
Here’s what that means in plain terms:
- Replacement Cost (RCV): The carrier pays what it costs to replace your roof with new materials, minus your deductible.
- Actual Cash Value (ACV): The carrier pays the depreciated value of the roof (age + wear and tear are factored in).
- Scheduled Roof Settlement: Some carriers use a schedule that defines how much value a roof loses each year (for example, 10% per year after year five). The older the roof, the lower the payout — even for a covered loss.
Why it matters: A 15-year-old roof may only be covered for 40–50% of its replacement value if the policy uses a schedule. Knowing which applies to your policy helps you plan ahead, budget properly, and decide when to replace your roof before a loss occurs.
Water Damage: What’s Covered — and What’s Not
Water claims are the most misunderstood part of home insurance. Here’s a quick guide to how most policies define them.
Type of Water Damage
Typically Covered?
Example
