Why the Cheapest Home Insurance Premium May Cost Texas Homeowners More in the Long Run—Especially When It Comes to Roof Coverage

In Texas, we’re seeing a troubling trend: homeowners buying home insurance policies based solely on the lowest monthly premium. Insurance agents and companies often compete in a race to the bottom, advertising rock-bottom prices to "save you money" or lower your monthly mortgage payment. On the surface, this sounds great. Who wouldn’t want to reduce their monthly expenses? But the issue becomes painfully clear when a storm hits and you discover that the budget insurance policy you bought doesn’t actually cover what you thought it did.

Unfortunately, this scenario is becoming all too common in Texas—and we see it firsthand at Martin Roofing and Solar when we help homeowners with storm damage insurance roof claims. What seems like a small savings each month can end up costing you thousands when you need your roof replaced. In this blog post, we’re going to break down why the cheapest home insurance premium may not be the best value, especially when it comes to your roof. We'll walk you through key insurance terms like ACV vs RCV, explain deductible types, touch on common policy endorsements, and share the real risks of buying the wrong type of coverage.

ACV vs RCV Home Insurnace Roof Policies: What’s the Difference?

One of the most important things to understand about your home insurance policy is whether your roof is covered on an Actual Cash Value (ACV) or Replacement Cost Value (RCV) basis. These two policy types have major differences when it comes to your out-of-pocket expenses after a storm:

• RCV (Replacement Cost Value): This means your insurance will pay to replace your roof at today's market cost, minus your deductible. This is the coverage we almost always recommend if you can afford it. Your depreciation will be recoverable and covered by your insurance!

• ACV (Actual Cash Value): This means your insurance company will subtract depreciation from your claim payout, based on the age and condition of your roof. You will have to cover both your deductible and the non-recoverable depreciation! (we'll walk you through what that means)

Many Texas homeowners don’t realize they even have an ACV policy until they file a claim. That’s where non-recoverable depreciation becomes a major issue. If your roof is 10-15 years old and your policy is ACV, your insurance payout might be shockingly small—or even zero—after a storm. You could be left covering almost the entire cost of a roof replacement out-of-pocket.

We’ve seen real examples of homeowners receiving checks for only $1,000 or $2,000 toward a roof that costs $15,000 or more to replace. That’s not insurance—that’s often a false sense of security.

How Roof Claim Insurance Payouts Work

Here’s a real-world example: Say you own a $350,000 home in Houston with a 15-year-old roof that gets totaled in a hailstorm. Your insurance company determines the roof will cost $20,000 to replace and had $10,000 in depreciation, and your deductible is 1% ($3,500).

Total Cost for The New Roof: $20,000

ACV Payment: $6,500

Your deductible: $3,500

Depreciation: $10,000

• ACV Policy: Your payout would be just the $6,500 ACV payment in this example. You would be on the hook for the remaining $13,500 to cover both your deductible and non-recoverable depreciation!

• RCV Policy: 1st the insurance would send the ACV payment of $6,500. Then you would pay your deductible of $3,500 (your total out of pocket cost for a new roof). Then you would get the work done and send your insurance proof of completion and proof of payment for your deductible and then they would release the recoverable depreciation of $10,000 to get sent. Your total out of pocket cost would be just your deductible of $3,500.

  
  

That’s a $10,000 difference in what would be your out-of-pocket expense in this example for simply having an ACV policy vs a RCV policy! This is why we recommend RCV policies to be best covered.

Here is another example of this broken out for a RCV vs ACV payout might look:

Deductibles: Bigger Isn’t Always Better- Even in Texas

Another area where insurance agents try to lower your premium is by increasing your deductible. While this can result in slightly lower monthly payments, it can be financially devastating when you need to use your policy.

• A 1% deductible on a $350,000 home = $3,500

• A 2% deductible = $7,000

• A 5% deductible = $17,500

Yes, those are percentages of your home’s insured value—not the claim amount. That’s a very common misconception we see here in Texas. Homeowners think a 2% deductible means 2% of the damage—it doesn’t. It’s 2% of the total home value. So if you have a 5% deductible on a $350,000 home, you’d be required to pay $17,500 out of pocket before your insurance company contributes anything. In many cases, that’s more than the entire cost of replacing your roof.

At that point, your insurance is essentially not covering your roof at all, especially if it’s an ACV policy on top of a high deductible.

Endorsements That Change the Game:

Wind, Hail, and Named Storm Deductibles

Many Texas home insurance policies now include special wind and hail endorsements or named storm deductibles. Here’s how they work:

• You might be told you have a 2% deductible…

• But if the damage is from hail or wind, the deductible goes up to 4%

• If the damage is from a hurricane (a “named storm”), the deductible could jump to 5%, 7%, or even 10%

Let’s run the numbers:

• A 10% hurricane deductible on a $350,000 house = $35,000 out of pocket before your insurance pays anything.

• That’s far more than the cost of a full roof replacement. Meaning: in a hurricane, your roof might not be covered at all.

We’ve seen this happen repeatedly in areas like Houston, Galveston and all around the Gulf Coast. Homeowners only realize these policy changes when it’s too late. These kinds of endorsements may lower your monthly or yearly home insurance premium, but they massively increase your risk.

Deductible Waivers: Not Only Illegal—Punishable by Law

A dangerous myth floating around Texas is that contractors can waive your deductible. That is 100% false and highly illegal - for both the contractor and the homeowner!

As of September 1, 2019, Texas House Bill 2102 (HB 2102) makes it a Class B misdemeanor for a contractor to waive, absorb, rebate, or otherwise not collect a policyholder's deductible. Violating this law is punishable by up to 180 days in jail and/or a large fine — and that applies to both the contractor and the homeowner.

“Texas law requires you to pay your deductible. A contractor who says you don’t have to is committing insurance fraud. Report suspected fraud at TDI.texas.gov.” — Texas Department of Insurance

We’ve heard it all — “the contractor said they’d just inflate the invoice,” or “they’ll cover my deductible as a marketing deal.” No matter how it’s spun, it’s illegal.

At Martin Roofing and Solar, we refuse to put us or our customers at legal risk just to land a project. We follow all insurance rules and state regulations because cutting corners is never worth jeopardizing your home, your freedom, or your finances. If a roofing company offers to waive your deductible — run.

For more guidance, you can read the official warning from the Texas Department of Insurance here.

Don’t fall for shady contractors or misleading offers. A reputable roofing company like Martin Roofing and Solar will always follow the law—and help you understand what your policy does and doesn’t cover.

Beware the “Cheap Monthly Rate” Home Insurance Trap

Insurance companies are not necessarily trying to mislead homeowners—but when agents focus entirely on lowering your monthly mortgage payment, they may sacrifice the value of your coverage.

Many homeowners don’t fully understand what’s in their policy because the documents are complex and full of technical language. And because of this, they just shop for the lowest number. But a cheap premium doesn’t help you if:

• Your deductible is too high to use your policy

• Your roof is only covered on an ACV basis

• Your wind/hail/named storm deductible is more than your entire roof costs

• Your policy excludes code upgrades or other essential add-ons

What you thought was good coverage might leave you with no financial help at all when you actually need it.

Be Diligent with Home Insurance Policy Renewals

Here’s another important tip: Always review your policy carefully at renewal. We’ve seen cases where a homeowner’s policy quietly switched from RCV to ACV once the roof passed 10-15 years of age.

If your roof is approaching that age, ask your insurance provider directly if your roof is still covered under RCV. Don’t assume. And don’t assume that what you had last year is still in place this year.

Code Upgrade: Smart Addition to Your Home Insurance Policy

Another policy feature we recommend looking into is code upgrade coverage (also known as “ordinance or law” coverage). Here’s why:

• If your roof was built 10-20 years ago, it might not be up to today’s local building codes

• If you file a claim and this coverage is not included, your insurance company only has to pay to replace what was originally there

• If this coverage is included, your insurance company is required to pay for any additional work needed to bring the roof up to current code

This can include things like decking replacement, ventilation requirements, or underlayment upgrades. Without this endorsement, the cost difference falls on you.

Can My Rates Go Up If I File a Claim for Storm Damage?

Another common concern we hear from Texas homeowners: “If I file a claim, won’t my rates go up?”

If the damage is caused by a natural event like wind or hail, your insurance company cannot legally raise your individual premium for filing a claim. That’s protected under Texas law.

Source: Texas Department of Insurance - Claim FAQ

Your rates may rise based on area-wide trends or risk assessments, but you cannot be singled out for rate increases based solely on an “act of God” claim. So if your roof has storm damage, don’t be afraid to use the coverage you’ve been paying for.

We’re Not Trying to Scare You—We Want to Inform You

At Martin Roofing and Solar, we’re not insurance agents. We’re not trying to sell you a specific policy. But as a trusted Texas roofing company, we’ve worked with hundreds of homeowners dealing with insurance claims, policy confusion, and frustrating denials. We’ve seen firsthand how certain insurance companies (rhyming with “Smallstate” and “Greatfarm”) have left homeowners hanging—and how both of them were even just recently even brought in front of the Senate to testify for their denial and underpayment practices. You can read about it here and see who those insurance companies are.

Our job is to make sure you are informed. You don’t have to buy the most expensive policy—but you do need to know what’s in the one you’re buying.

Know What You’re Getting—Not Just What You’re Paying

When it comes to protecting your home and roof in Texas, cheapest doesn’t always mean best. A low monthly premium might feel great—until it leaves you thousands of dollars short after a hailstorm or hurricane.

Take the time to understand your:

• Deductibles (including wind/hail/named storm deductibles)

• ACV vs RCV coverage

• Endorsements

• Policy changes at renewal

• Ordinance/code upgrade coverage

These details matter more than the $20-$30/month you might save on a premium.

About Martin Roofing and Solar

At Martin Roofing and Solar, we proudly serve homeowners across all of the greater Houston and greater Austin areas and their surrounding communities. Whether you're in Pflugerville, Round Rock, Hutto, Georgetown, Katy, Cypress, The Woodlands, Sugar Land, or Pearland, our roofing and solar experts are here to deliver top-tier service you can count on. We specialize in storm damage roof repairs, complete roof replacements, solar panel removals and reinstalls, and detailed, no-obligation roof inspections.

We understand the unique challenges that Texas homeowners face when it comes to roofing and insurance coverage. From powerful thunderstorms and hurricane-force winds in Houston to scorching heat and severe hailstorms in Austin, your roof is your first line of defense. That’s why our mission is to protect Texas homes with expert roofing solutions and to empower homeowners with the knowledge they need to make smart, informed insurance and home maintenance decisions.

Our Expert Roofing and Solar Services in Houston & Austin Include:

Free, No-Obligation Roof Inspections in Houston and Austin

We provide free, thorough roof inspections throughout the Houston and Austin metro areas. Whether you're worried about potential storm damage or just want peace of mind, our team of roofing specialists will inspect every inch of your roof and attic. We serve homeowners in Cedar Park, Lakeway, Leander, Missouri City, Richmond, and more. Our inspections identify hail damage, wind uplift, cracked shingles, flashing issues, and soft spots before they become costly repairs.

Storm Damage Roofing and Insurance Claim Support

We specialize in roof repairs and roof replacements caused by storm damage in Texas. Houston and Austin both experience frequent severe weather, including hailstorms, high winds, and hurricanes. If your home has been affected, we’ll work with your insurance company to provide full documentation, help walk you through a storm damage claim, and even meet with your adjuster when they come out.

Whether you're dealing with hail damage in Pflugerville or wind damage in Katy, Martin Roofing and Solar has helped hundreds of homeowners restore their roofs through their homeowners insurance policies with minimal out-of-pocket costs.

Flexible Roof Financing Options in Houston and Austin

We understand that a new roof can be a major investment, which is why we offer affordable, flexible roof financing plans to homeowners in both Houston and Austin. With varying interest-free financing promo options and promotional offers for qualified applicants, you can protect your home without breaking the bank. Whether you’re in Cypress or Round Rock, we’ll help you explore all your financial options.

Why Houston and Austin Homeowners Trust Martin Roofing and Solar

• Locally Owned and Operated: We understand the specific roofing needs of Texas and the areas we serve. We also love to give back to our communities and support multiple local non-profit organizations that help raise up our cities.

• Over 100 Five-Star Reviews: Trusted by homeowners from The Heights in Houston to the Leander area in Austin.

• Top Roofing Materials: We use only premium, weather-resistant roofing products from trusted manufacturers. We are also certified by countless organizations and voluntary members of the Roofing Contractors Association of Texas that stringently vets all member companies.

• Full Transparency: You’ll get honest, detailed estimates and clear communication from start to finish.

• Fully Licensed and Insured: We adhere to Texas building codes and safety regulations.

Roof Damage in Texas? Call Martin Roofing and Solar First

Don't wait until a small leak becomes a major expense. Houston’s hurricane season and Austin’s intense hail events are only becoming more frequent. Let Martin Roofing and Solar give your home a free roof inspection and customized action plan.

We proudly serve:

• Houston areas: Katy, Cypress, Spring, Tomball, Jersey Village, Pasadena, Sugar Land, Pearland, Missouri City, Friendswood, The Woodlands, ect

• Austin areas: Pflugerville, Round Rock, Hutto, Georgetown, Cedar Park, Lakeway, Buda, Kyle, Dripping Springs, Leander, San Marcos, ect

Whether you're in need of storm damage roof repairs, a roof inspection in Houston, roof replacement in Austin, or full-service solar panel reinstallation in Austin, Martin Roofing and Solar is your one-stop solution for honest, reliable, high-quality roofing and solar services.

Schedule your FREE roof inspection today and see why more Houston and Austin homeowners trust Martin Roofing and Solar to protect their homes and families.

Martin Roofing and Solar – Texas Strong, Texas Trusted.

Houston:

832-617-4037

Austin:

512-298-2944