How a New Roof Can Help Lower Your Homeowners Insurance Cost for Your Coastal Property

By Brad Davis, CIC

An original version was written in December 2023 (updated here 6/25/2025), this blog remains just as relevant today. With ongoing changes in the coastal homeowners insurance market, especially in areas like Myrtle Beach and other parts of the South Carolina and North Carolina coasts – the age and condition of your roof continue to play a major role in your coverage options and insurance costs. Whether you’re exploring roof replacement now or already completed one in the past year or two, the tips and information below can still help you save money and make smarter insurance decisions.

Table of Contents

1. Why Roof Age Matters in Coastal Insurance

2. Replacement Cost Value (RCV) vs. Actual Cash Value (ACV)

3. Insurance Company Roof Age Guidelines

4. How a New Roof Reduces Your Premium

5. Steps to Notify Your Insurance Company

6. Documentation & Proof of Roof Replacement

7. Choosing the Right Roof Materials for Coastal Homes

8. Roof Maintenance Best Practices

9. Why Coastal Homes Need Stronger Roof Standards

10. Cost‑Benefit Analysis: Is a New Roof Worth It?

11. Conclusion & Key Takeaways

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1. Why Roof Age Matters in Coastal Insurance

Coastal regions like Myrtle Beach, Charleston, and the Southeast Coast are exposed to high winds, salt spray, heavy rains, hail, and hurricanes. Home insurance companies know an older roof (typically over 10 – 15 years) is far more vulnerable to damage. To mitigate their risk, insurers have been tightening underwriting guidelines, reducing options for homes with aging roofs, and raising premiums for those remaining insured.

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2. Replacement Cost Value (RCV) vs. Actual Cash Value (ACV)

Understanding RCV versus ACV is crucial:

• RCV (Replacement Cost Value): Covers the full cost of replacing your roof with new materials of like kind and quality, minus your deductible.

• ACV (Actual Cash Value): Covers only the depreciated value of your roof based on age, wear, and tear – resulting in much lower payouts.

Since 2023, many carriers have curtailed RCV policies for roofs older than 10 – 15 years. Instead, they only offer ACV coverage – if they offer it at all. That means even after paying a deductible, your reimbursement might fall far short of the replacement cost. Read more from the NAIC on the RCV vs. ACV difference.

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3. Insurance Company Roof Age Guidelines

As of 2025, most major carriers in coastal states have the following roof stipulations:

If your roof exceeds these age limits, options narrow significantly—and premiums increase due to reduced competition. In some cases, insurers will refuse coverage outright unless you replace the roof first.

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4. How a New Roof Reduces Your Premium

Installing a new roof can either:

1. Qualify you for more affordable carriers – who offer lower premiums to homes with new roofs;

2. Trigger a policy discount or rate reduction from your current insurer.

Typically, homeowners with a new roof may save anywhere from 5% to 30%+ on their annual premiums—depending on market conditions, roof type, and insurer.

Example: A $2,000 annual premium might drop to $1,400, a $600 savings per year.

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5. Steps to Notify Your Insurance Company

To maximize potential savings:

1. Pre-replacement notification – Inform your agent before construction begins to explore Builder’s Risk coverage and potential impacts on your premium.

2. Post-installation reporting – Promptly send the insurer the signed contract, completion date, and invoice (showing brand, material type, and workmanship). Other documentation may be used for some insurance companies.

3. Request a rate review – Ask your agent to submit a rate audit to check for premium adjustments.

4. Compare carrier offerings – Use your new roof as leverage to shop other insurers for better underwriting and rates.

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6. Documentation & Proof of Roof Replacement

Insurers may request evidence at renewal or during a claim to confirm your roof’s age or replacement date. Keep the following:

• Final invoice listing installation date and materials used

• Manufacturer warranty (typically 25–50 years)

• Contractor’s installation certificate or county permit

• Photos showing “before” and “after” (better if date-stamped)

Having this documentation allows your carrier or agent to correctly rate your policy and determine eligibility for RCV instead of ACV.

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7. Choosing the Right Roof Materials for Coastal Homes

The type and durability of roofing materials can impact both insurance premiums and long-term maintenance:

• 3‑tab shingles – Basic, inexpensive, but less wind-rated.

• Architectural/laminated shingles – Thicker, more durable, and often still eligible for RCV past certain age thresholds – plus they may qualify for better premiums.

• Metal roofs – Highly durable and wind-rated, but carriers may apply special endorsements excluding cosmetic dents. These can still help lower your premium due to longevity and resistance to hail.

• Tile or synthetic slate – Premium options with high wind & fire ratings – but more expensive upfront; may lead to savings over time through reduced claims.

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8. Roof Maintenance Best Practices

A well-maintained roof enhances longevity and insurance eligibility. Follow these maintenance tips:

1. Annual inspections – Hire a licensed roofer to check for loose shingles, damaged flashing, and debris buildup.

2. Spring cleaning – Remove leaves, branches, and algae to prevent moisture retention.

3. Trim overhanging trees – Prevent wind-driven debris and moisture buildup that leads to moss or rot.

4. Gutter maintenance – Clean gutters twice annually to ensure proper drainage and avoid water damage.

5. Minor repairs – Fix small issues—like damaged shingles or flashing—promptly before they escalate.

*Consider other products on the market. There are products such as Roof Shing Resealing by LiftLock or sprays that can extend the life of your roof.

Well-maintained roofs showcase pride of ownership, an important factor in insurer risk assessments.

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9. Why Coastal Homes Need Stricter Roof Standards

Coastal properties face extreme weather, so insurers inspect roof condition as if it were part of the home’s structural integrity.

• Wind exposure: High-velocity winds can tear off old shingles or damage flashing.

• Salt corrosion: Near the ocean, salt spray accelerates material deterioration.

• Insurance market trends: Following storms like Dorian or Ian, many carriers raised renewal prices or imposed moratoriums on policies for older roofs.

Your best defense? A newer, wind-rated roof that passes both property and insurer scrutiny.

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10. Cost‑Benefit Analysis: Is a New Roof Worth It?

Replacing a roof is a big investment. Here’s how to assess if it’s financially smart:

• Roof replacement cost – For a typical 2,000 sq ft home, expect $8,000–$20,000 depending on materials.

• Annual insurance savings – 5–30% of premium. On a $2,500 policy, that’s $125–$750 per year.

• Payback period – If you save $500/year and replacement cost was $15,000, it’ll take ~30 years to break even on premiums alone—so pair it with reduced repair risk and increased home value.

• Tougher market access – In areas where insurers refuse policies for older roofs, replacement becomes necessary to secure coverage at any price (or at all).

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11. Conclusion & Key Takeaways

1. A new roof can lower your insurance premium by 5–30% or more, especially in coastal regions.

2. It can qualify you for more favorable carriers and RCV coverage—a big win over ACV.

3. Notify your agent before and after replacement to maximize discounts and compliance.

4. Keep full documentation: invoice, warranty, photos, permitting – essential for proper insurance rating.

5. Choose durable, wind-rated materials (architectural shingles, metal, tile) for long-term savings and coverage eligibility.

6. Maintain your roof regularly to prolong its life and demonstrate pride of ownership to insurers.

7. Compare rates post-replacement, you might find even better premiums with other carriers.

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Final Thoughts

Replacing your roof isn’t just a home-improvement decision, it’s a strategic financial move. In coastal regions, where insurance markets are volatile and weather risks loom large, a newer roof unlocks better coverage, greater insurer options, and meaningful savings. It’s an investment that pays off not just in curb appeal, but through reduced premiums, lower risk, and stronger market positioning for your property.

*As always, the best thing you can do is to fully read your policy. Nothing in this blog post is intended to alter your policy at all.

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Ready to Explore Your Options?

• Get a homeowners insurance review at Davis Insurance Associates to see how your new roof impacts your premium.

• Schedule a free roof inspection with a trusted local contractor in your area.

• Ask your agent about transitioning from ACV to RCV coverage—and potential discounts for wind-rated materials.