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Insurance Companies Are Denying Coverage for Asphalt Shingle Roofs

Written by J Bretz | Mar 16, 2026 11:31:50 PM

 

Reducing and Denying Claims For Hail Damaged Roofs

Insurance companies in Colorado and Wyoming are increasingly reducing, restricting, or denying coverage for asphalt shingle roofs due to escalating hail losses. Insurers now commonly enforce 10–15 year age limits, automatically convert coverage from Replacement Cost Value (RCV) to Actual Cash Value (ACV), and impose large wind and hail deductibles. As a result, many homeowners are effectively selfinsuring asphalt roofs, accelerating the shift toward longerlasting, hailresistant roofing systems such as metal, concrete tile, and synthetic alternatives.

Historical Context: From Cedar Shake to Asphalt Shingles

For decades, cedar shake roofs were the premium roofing standard for expensive homes in Colorado and Wyoming. During the 1980s and 1990s, insurance companies paid billions of dollars in hailrelated claims for cedar shake roofs. Although wildfire risk was often cited, excessive hail losses were the primary reason insurers stopped covering wood shake systems.

Asphalt shingles replaced cedar shake as the preferred alternative. However, by 2026, asphalt shingles have become the next major target for insurance restrictions due to their vulnerability to hail damage.

The Hail Alley Crisis in Colorado

Hail is now the single largest driver of homeowners insurance losses in Colorado, surpassing wildfire risk. A single 2017 Denverarea hailstorm resulted in more than $2.3 billion in insured losses, making it the most expensive natural disaster in Colorados history.

Today, between 30% and 54% of a typical Colorado homeowner’s insurance premium is allocated specifically to roof replacement risk.

Why Asphalt Shingles Have Fallen Out of Favor

Standard asphalt shingles typically provide only 5–20 years of viable protection in Colorado due to:

  • Frequent hail events,

  • Intense UV exposure,

  • Freezethaw cycles

  • Rapid temperature swings

Many insurers now automatically convert asphalt roofs from RCV to ACV once the roof reaches 10 years of age, regardless of condition or Class 4 impact rating.

In addition, wind and hail deductibles commonly range from 1% to 5% of a home’s value. For a $500,000 home, a 2% deductible equals $10,000, often leaving homeowners responsible for most or all of the roof replacement cost.

Why This Matters to Colorado and Wyoming Homeowners

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  • Aging asphalt roofs increasingly limit insurance options

  • Roof age can derail real estate transactions

  • High deductibles and ACV coverage shift costs to homeowners

  • Roofing material choice now affects longterm ownership costs

For many homeowners, upgrading to metal, concrete tile, or advanced synthetic roofing systems is no longer just a durability decision — it is an insurance and financial strategy.

 

Frequently Asked Questions

At what age do insurance companies stop covering asphalt roofs?

Many insurers now impose hard limits at 10 or 15 years, regardless of roof condition.

Does a Class 4 shingle prevent insurance issues?

Not always. Some insurers still apply ACV coverage or deny policies based solely on roof age.

Why are metal, tile and synthetic roofs treated differently?

Their longer lifespan and superior hail resistance reduce claim frequency and severity.

 

About the Author

J. Bretz is the Founder and CEO of Excel Roofing, Inc., with over 3 decades of experience in roofing systems, insurancedriven construction, and hailimpact mitigation throughout Colorado and Wyoming.