Why Insurance Companies Are Dropping Cedar Shake Roofs – And What You Can Do About It
Picture this: your home is crowned with a stunning cedar shake roof, its rustic charm turning heads in the neighborhood. Then, out of the blue, your insurance company hits you with a bombshell—higher premiums, limited coverage, or worse, a policy non-renewal. If this sounds like a nightmare, it’s one many homeowners are living right now. As Hail and Wind damage claim experts, I’ve seen this trend grow, and it’s time to unpack why insurance companies are shying away from cedar shake roofing and what you can do to protect your home without breaking the bank.
The Insurance Industry’s Cold Shoulder to Cedar Shake
Let’s cut to the chase: insurance companies are not fans of cedar shake roofs. Industry data shows that 60% of national insurers either refuse to cover homes with wood roofs or impose strict limitations. Another 20% tack on a surcharge, meaning you’re paying a premium just for your roof’s aesthetic. Big names like State Farm and Allstate have even stopped renewing policies for homes with cedar roofs in several states, leaving homeowners in a lurch.
But it’s not just about saying “no.” Many insurers are shifting from Replacement Cost Value (RCV) policies, which cover the full cost of replacing a damaged roof, to Actual Cash Value (ACV) policies. With ACV, you get a payout based on your roof’s depreciated value—think of it like getting a used car’s worth for a totaled new one. If your cedar roof is 15 years old, that payout might cover only a fraction of a new roof’s cost, leaving you to foot the rest of the bill.
Why Cedar Shake Roofs Are a Risky Bet
Insurance companies aren’t just being mean—they’re playing the numbers game. Cedar shake roofs come with risks that make insurers nervous, and here’s why:
- Fire Hazard: Cedar is like kindling waiting for a spark. Homes with wood roofs are 2-3 times more likely to catch fire, especially in wildfire-prone areas. Insurers see dollar signs flashing when they think about potential fire claims.
- Storm Vulnerability: Cedar roofs take a beating from hail, with a 40% higher damage rate compared to asphalt or synthetic materials. With storms getting fiercer, insurers are bracing for more claims.
- Maintenance Madness: Cedar roofs demand constant TLC to fend off moss, rot, warping, and pesky insects. Skip a maintenance session, and you’re rolling the dice on costly repairs.
These risks translate to more frequent and expensive claims, which insurers want to avoid. It’s like insuring a sports car—you might love the ride, but the premiums reflect the risk.
How This Hits Homeowners Where It Hurts
If you’ve got a cedar shake roof, you’re likely feeling the squeeze. Here’s what you might be facing:
- Skyrocketing Premiums: Insurance costs can jump 25%-75% higher than for homes with less risky roofing materials.
- Limited Coverage: Some policies exclude damage from hail or wind, or only cover partial repairs, leaving you with hefty out-of-pocket costs.
- Policy Non-Renewals: In some cases, insurers may drop your coverage entirely, forcing you to shop for new insurance in a tough market.
- ACV Pitfalls: With ACV policies, a damaged 20-year-old roof might only get you a fraction of the replacement cost, sticking you with a big bill.
I once worked with a homeowner who thought his cedar roof was fine—until a hailstorm rolled through. His ACV policy left him paying thousands out of pocket for a new roof. Stories like this are becoming all too common, and it’s a wake-up call for anyone with cedar shake.
Modern Alternatives That Keep Insurers Happy
Don’t despair—there are plenty of roofing options that give you the look you love without the insurance headaches. Here’s a rundown of modern alternatives:
| Roofing Material | Key Benefits | Insurance Advantages |
|---|---|---|
| Synthetic Shake (e.g., DaVinci, F-Wave) | Mimics cedar look, Class A fire-rated, hail-resistant, 50-year warranties | Widely accepted, may lower premiums |
| Architectural Asphalt | Affordable, durable, less prone to fire and storm damage | Popular with insurers, cost-effective |
| Metal Roofing | Fireproof, hail and wind-resistant, long-lasting | Often qualifies for insurance discounts |
| Fiber Cement/Engineered Wood | Wood-like appearance, fire-resistant, low maintenance | Insurer-friendly, durable |
These materials not only reduce your insurance costs but also offer durability and low maintenance, making them a win-win for homeowners.
Steps to Switch Your Roof and Save
Ready to make a change? Here’s how to navigate the transition:
- Consult the Pros: Work with experienced roofers, like our team at Innovative Home Concepts, to evaluate your home and recommend the best material for your needs.
- Talk to Your Insurer: Ask your insurance provider about preferred roofing materials and potential discounts. Knowledge is power!
- Think Long-Term: A new roof is an investment, but lower premiums and less maintenance can save you big over time.
At Innovative Home Concepts, we offer our exclusive InnoMAXX series of roofing and siding products, plus the GutterShutter Clog Free gutter system, to ensure your home is both beautiful and insurer-friendly.
Wrapping It Up
Cedar shake roofs may be the belle of the ball, but they’re losing their charm with insurance companies. Fire risks, storm damage, and high maintenance make them a costly gamble, leading to higher premiums, limited coverage, and policy non-renewals. The good news? Modern alternatives like synthetic shake, asphalt, metal, and fiber cement offer the look you love with the durability and insurance approval you need.
Want to learn more about keeping your home safe and stylish? Dive into our blog for more home improvement tips. Ready to upgrade your roof? Contact Innovative Home Concepts for a free consultation and price quote. Let’s make your home a worry-free masterpiece.
References
- Insurance Information Institute – Homeowners Insurance
- National Roofing Contractors Association – Roofing Materials
- FEMA – Homeowners Guide to Insurance
About the Author
Rhett Wilborn is the president and founder of Innovative Home Concepts, with over 30 years of experience in the home improvement industry. From rehabbing million-dollar homes to managing commercial properties, Rhett brings a wealth of knowledge and a knack for simplifying complex concepts. His witty and intelligent approach makes even the most intricate subjects accessible to all homeowners.
