Understanding the 10-year rule

By Jesse Sanchez. 

How insurance policies are changing coverage for older roofs and what homeowners and contractors should understand about the 10-year rule. 

Roof warranties are often marketed as coverage for decades to come, yet many homeowners are discovering that insurance coverage does not necessarily follow the same timeline. Roofing professionals at Rooferees note that insurers are increasingly applying what contractors commonly refer to as the ‘10-year rule,’ a policy shift that can significantly influence how storm damage claims are handled for older roofing systems. 

The change is largely tied to broader financial pressures within the property insurance industry. In recent years, insurers have faced a surge in costly property claims driven by more frequent severe weather events and steadily rising construction material costs. Those pressures are reflected in the industry’s financial performance. According to publicly reported figures, State Farm recorded more than $14 billion in underwriting losses from property claims in 2023, following losses exceeding $13 billion in 2022. When claim payouts consistently outpace premium revenue, insurers are compelled to reassess how risk is evaluated and priced, including the way aging roofs are insured. 

As a result, many carriers have begun adjusting policy terms once a roof passes a certain age threshold. Even when roofing materials are backed by manufacturer warranties of 20 or 30 years, insurance coverage may change much sooner. Around the 10-year mark, some policies transition from full replacement cost coverage to actual cash value (ACV) coverage. Under ACV policies, depreciation is deducted from the claim payout, meaning homeowners may receive significantly less funding to repair or replace a damaged roof. 

Those limitations can become more restrictive as the roof continues to age. In some cases, policies may reduce coverage further or stop insuring the roof altogether once it reaches a certain age, depending on the insurer and specific policy terms. For homeowners facing storm damage, that shift can dramatically affect how much financial support is available for repairs. 

Because these provisions vary widely between insurance carriers, reviewing policy details carefully has become increasingly important. Contractors and homeowners who understand how roof age influences coverage can better prepare for potential repairs and avoid unexpected financial gaps when severe weather strikes. 

Learn more about how the 10-year rule is reshaping roof insurance coverage and why homeowners should review policies carefully!