Limited Matching Coverage for Siding and Roof Materials in Homeowners Insurance

Many homeowners are unaware that their insurance policies may not cover the full cost of replacing their siding and roof materials if they're damaged or destroyed. This can leave homeowners with a significant financial burden.

Some insurance policies may only cover 80% of the cost to replace siding and roof materials, leaving homeowners to pay the remaining 20% out of pocket. This can be a substantial amount, especially if the damage is extensive.

The cost to replace siding and roof materials can vary widely depending on the type and quality of the materials, as well as the size of the home. For example, the cost to replace a roof with asphalt shingles can range from $3,500 to $10,000 or more.

Some insurers have added language to their policies to clarify their position on matching. They explicitly state that they won't pay to repair or replace property solely because of mismatch.

The insurance policy is designed to put you in the same financial position after a loss as you were before it occurred. This is called indemnification.

The policy doesn't require the insurance company to make your property look aesthetically pleasing, complete with matching siding and roofing. Claims adjusters are bound by the policy and will only make necessary repairs.

If your siding and/or roofing is worn out or weathered due to time and exposure, the insurance company won't pay for replacement. However, if your siding and/or roofing materials are no longer made or obsolete, you may be covered for replacement with similar materials.

Some policies include sample language that covers reimbursement for replacing undamaged siding and/or composition shingle roofing with materials of like kind and quality. This coverage applies if the same siding and/or roofing material is no longer available.

A middle ground approach is included in some homeowners policies, which limits coverage for matching to a percentage of the dwelling limit.

Identifying lost or damaged property can be a challenge, especially when it comes to siding and roof materials. The principle of indemnity underlies property insurance, aiming to restore insureds to their pre-loss condition.

The question then becomes what is the lost or damaged property? Is it just the section of siding that has blown off or is it the building itself that may have an unacceptable appearance? This is a crucial distinction to make, as it affects the extent of coverage.

Restoring the building to its pre-loss condition is the goal of property insurance. If the policy simply pays to replace the damaged siding, has it truly restored the insured to the same pre-loss condition?

The legal framework surrounding limited matching coverage for siding and roof materials is complex, but there are some key points to keep in mind.

The National Association of Insurance Commissioners (NAIC) addresses the matching issue in its Unfair Property/Casualty Claims Settlement Practices Model Regulation, which requires insurers to replace undamaged property to create a uniform appearance.

In some states, courts have limited an insurer's obligation, ruling that a replacement cost policy only requires payment for the pieces of property that were actually damaged.

A replacement cost policy only requires the insurer to pay for the pieces of property that were actually damaged.

In states where there is no statute or regulation addressing the issue, case law may provide an answer. For example, in Alabama, courts have ruled that a policy providing for "the replacement cost of that part of the building damaged for equivalent construction and use on the same premises" does not require the insurer to pay for matching materials.

However, other states have different interpretations. In Minnesota, a court ruled that the insurer must pay to replace all siding on each of 20 buildings damaged by hail, even if the replacement panels were not available in the same color.

The policy term "comparable material and quality" was interpreted to mean "a reasonable color match between new and existing siding", requiring something less than an identical color match.

Ohio's Administrative Code requires insurers to replace undamaged property to effect matching, but a court in a case involving weathered wooden roof shakes pointed out that new shakes would eventually weather to match the old ones, resulting in a reasonably comparable appearance.

Here are some examples of how different states have interpreted the matching issue:

These examples illustrate the importance of understanding the specific laws and regulations in your state, as well as the policy language in your insurance contract.

Some insurance policies clearly exclude matching, while others cover it to a certain extent.

We'll look at some sample language from insurance policies to see how they handle matching.

In one policy, the insurer excludes paying to repair or replace undamaged material due to a mismatch between the old and new material.

This means if you have undamaged siding or roofing, the insurance company won't pay to replace it with new material that matches the damaged material.

Other policies, however, cover reimbursement for replacing undamaged siding and/or roofing with materials of like kind and quality.

This means if the same siding or roofing material is no longer available, the insurance company will pay to replace it with similar materials.

But, there's an exception for mismatches caused by weathering, fading, oxidizing, or wear and tear.

Some policies even limit coverage for matching to a percentage of the dwelling limit.

It's also worth noting that some insurers have added language to their policies to clearly exclude or cover matching, making their position clear.

Ultimately, it's essential to review your insurance policy to understand what's covered and what's not.

Most people don't realize that homeowners insurance doesn't always cover matching siding and roofing materials after a claim.

The insurance policy is designed to put you back in the same financial position as before the loss, also known as indemnification. This means if you have a hole in your house, the insurance company's obligation is to repair the hole.

You might be thinking, "But what about if the replacement materials don't match the rest of my house?" Unfortunately, the policy doesn't say that the insurance company has to make it match and look aesthetically pleasing.

Claims adjusters are bound by the policy, so they won't slap on new red siding next to your existing canary yellow siding. However, if the same siding and/or roofing material is no longer available, some insurance policies may cover reimbursement for the cost to replace undamaged materials with ones of like kind and quality.

This is where the Dwelling and Other Structures Siding and/or Roofing Restoration Coverage from Erie Insurance comes in, which reimburses the insured for the cost of replacing undamaged siding and/or roofing when the materials found on the covered loss area are no longer available.

Some insurance policies may also include sample language covering matching, such as replacing all of the undamaged vinyl or aluminum siding and/or composition shingle roofing with materials of like kind and quality that are substantially similar to those materials that were damaged. This coverage applies if the same siding and/or roofing material is no longer available.