www.mrca.org  —  Midwest Roofer
16
LEGALLY SPEAKING
R
oofing contractors across 
the Midwest are seeing a 
shift that is changing how 
storm work gets paid. What used 
to be a fairly predictable process 
is now more complicated, and in 
many cases, less favorable to the 
homeowner.
Policies that once paid for full roof replacement 
are now limiting those payments in ways that are not 
always obvious. Many still say replacement cost, but 
when a claim is made, the roof is treated differently. 
In many cases, the roof is now being paid on an 
actual cash value basis, or something very close to 
it.
Why Carriers Are Making This Change
This shift is being driven by the cost of claims. 
Roof losses have become one of the largest 
drivers of property insurance payouts. In 2024 
alone, roof-related claims exceeded 30 billion 
dollars nationwide. At the same time, storm activity 
continues to hit the same regions year after year.
Hail remains one of the biggest factors. In 
2025, more than 5,400 hail events were recorded 
across the United States. According to NOAA data 
summarized by the Insurance Information Institute, 
five of the top ten states for hail activity that year 
were in the Midwest, including Illinois, Missouri, 
Indiana, Minnesota, and North Dakota.
That is not just a one-year snapshot. In prior 
years, states like Kansas and Nebraska have 
consistently ranked among the most active for hail 
events. The pattern is clear. The central United 
States continues to see repeated storm exposure, 
often affecting the same properties multiple times 
over the life of a roof.
From an underwriting standpoint, that kind of 
repeat loss environment creates pressure to change 
how claims are paid. Instead of treating every roof 
as a full replacement regardless of age, carriers are 
moving toward structures that limit exposure on older 
roofs.
Actual cash value provisions and roof payment 
schedules are part of that shift. They allow carriers 
to tie payment more directly to the age and 
By: Michelle C. Le, Managing Member Law Offices of Michelle C. Le, PLLC
REPLACEMENT COST ISN’T 
WHAT IT USED TO BE:
THE RISE OF ACV AND ROOF PAYMENT SCHEDULES

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