If you have a State Farm homeowners policy in Illinois, a bigger bill may be on the way. State Farm announced an average 8% rate increase for Illinois customers. New customers saw it starting Oct. 1, and existing customers will see it on Dec. 1.
A rate change is a good reason to sit down with your agent and read your policy, no matter who insures you. Plenty of insurance ads focus on how much you can save. A lower price can also mean less coverage on your roof, and homeowners can find that out only after they file a claim.
We’re a family-owned roofing and siding company in Roscoe and Rockford, and we’ve helped thousands of Rockford-area homeowners through roof claims since 2006. Here are the questions we’d want answered before renewal. This isn’t insurance advice, just a checklist for reviewing your policy with your agent.
Replacement Cost vs Actual Cash Value
What it means: Replacement cost coverage pays to repair or replace damage with materials of similar kind and quality, without taking depreciation out. Actual cash value (ACV) coverage takes depreciation out, so an older roof gets paid at what it’s worth today, not what a new one costs.
Example: Two neighbors have identical roofs with identical storm damage. The neighbor with replacement cost coverage gets the replacement cost minus the deductible. The neighbor with ACV also loses years of depreciation, which can leave a big gap to pay out of pocket. And a policy can pay replacement cost on the house but only ACV on the roof.
One agent once told Justin Martin, our owner, that if you get in a car accident, the insurance company isn’t going to buy you a new car, so it should be the same for your roof. Justin reminded him that you can go out and buy a used car. You can’t buy a used roof. When a roof is paid at actual cash value, the homeowner still has to pay for a whole new roof and cover the difference.
Ask your agent: “Is my roof covered at replacement cost or actual cash value? Is the roof treated differently from the rest of the house?”
Roof Payment Schedules
What it means: Some policies pay roof claims from a set table based on the roof’s age and material, instead of what it actually costs to replace it on the day of the storm. The older the roof, the smaller the percentage the policy pays.
Example: Your roof is 14 years old and a hailstorm ruins it. Under a roof payment schedule, the policy may pay only a fraction of the replacement cost because of that age, even though the new roof costs just as much.
Ask your agent: “Does my policy have a roof payment schedule? If so, can you show me what percentage it would pay for my roof at its current age, and what it costs to remove it?”
Cosmetic Damage Exclusions
What it means: Some policies exclude damage that changes how a surface looks but not how it works, like hail dents in a metal roof or siding. Some insurers sell a buyback endorsement that adds this coverage back.
Example: Hail dents your metal roof all over, but it isn’t leaking. Under a cosmetic damage exclusion, the claim can be denied, and you live with the dents or pay for the fix yourself.
Ask your agent: “Does my policy exclude cosmetic damage to my roof or siding? Is there a buyback option, and what does it cost?”
Matching Exclusions
What it means: When part of a roof or one wall of siding is damaged, new materials may not match the old ones, especially if the old product is no longer made. Some policies limit or exclude paying to replace undamaged areas so everything matches. Some insurers offer a buyback.
Example: Hail damages the siding on one side of your house, and your color has been discontinued. With a matching exclusion, the policy may pay only for that side, leaving it mismatched with the rest.
Ask your agent: “If my roof or siding can’t be matched, will my policy pay to make it look uniform, or only for the damaged section?”
Wind and Hail Deductibles: Percentage vs Flat
What it means: Many policies have a separate deductible for wind and hail. It can be a flat dollar amount, like $1,000, or a percentage of your home’s dwelling coverage, often somewhere from 1% to 5%.
Example: Your home is insured for $300,000 with a 2% wind and hail deductible. That’s $6,000 you pay before the policy pays anything on a storm claim. If the roof repair costs $5,000, the policy may pay nothing at all. Our guide to whether to file a roof insurance claim walks through how your deductible fits in.
Ask your agent: “Is my wind and hail deductible a flat amount or a percentage? What is it in actual dollars for my home?”
Code Upgrade Coverage (Ordinance or Law)
What it means: When a home is repaired after a covered loss, the work has to meet today’s building codes, not the codes from when the house was built. Ordinance or law coverage helps pay the extra cost to bring things up to current code. Many standard policies include a limited amount, and you can often buy more with an endorsement.
Example: A storm damages your roof, and the repair has to meet current code. That can mean extra work your old roof never had. Without enough ordinance or law coverage, those extra costs can land on you, even though the storm damage itself was covered.
Ask your agent: “How much ordinance or law coverage do I have, in dollars? Is it enough for a roof replacement on a home my age, and what would it cost to raise it?”
We go deeper in code upgrade coverage and your roof.
While You’re Reviewing Your Policy: Sewer and Septic Backup
This one isn’t about your roof, but it can catch homeowners off guard, so ask while you have your agent on the phone.
What it means: Many homeowners policies offer limited or no coverage when water or sewage backs up through drains or a sump pump overflows. Coverage is usually added with an endorsement that has its own limit.
Example: A heavy rain overwhelms the sewer or your sump pump fails, and water backs up into your finished basement. Without backup coverage, the cleanup and repairs can come out of your pocket.
Ask your agent: “Do I have sewer and drain backup coverage, and what’s the limit? Does it cover sump pump overflow? If I have a septic system, does it cover a backup from that too?”
Impact Resistant Roof Discounts
Some insurers offer premium credits in Illinois for qualifying impact resistant roofing, like Class 4 shingles. Discounts vary by insurer, and some require a certification form or proof of the exact product installed. If you’re planning a new roof, ask before the work starts so you know what paperwork your insurer needs. Learn more about impact resistant shingles.
Ask your agent: “Do you offer a discount for an impact resistant roof? Which products qualify, and what proof do you need?”
Know Your Roof Before You Call
Your agent knows your policy, but can’t see your roof from the office. Its age and condition matter when you’re choosing coverage and deductibles.
Martin Exteriors offers free roof inspections for everyone. We’ll check your roof, take photos and tell you plainly what shape it’s in, so you go into your renewal knowing what you’re protecting.
Call (815) 624-6278 or book your free roof inspection online.
Frequently Asked Questions
When will State Farm’s Illinois rate increase show up for existing customers?
State Farm said existing Illinois customers will see the average 8% increase on Dec. 1. Your own change can differ from the average, so check your renewal notice.
What’s the difference between replacement cost and actual cash value on a roof?
Replacement cost pays to replace your roof without subtracting depreciation. Actual cash value subtracts depreciation for age and wear, so an older roof can be paid far less than a new one costs.
Does homeowners insurance cover sewer backup?
Many policies offer limited or no coverage for sewer or drain backup unless you add an endorsement. Ask your agent whether you have it and what the limit is.
Can a roof inspection help before my insurance renewal?
Yes. Knowing your roof’s age and condition can help you ask better coverage questions. Martin Exteriors offers free roof inspections for everyone. Call (815) 624-6278.
