2026 State of Roofing Insurance Report: Carrier Exits, AOB Reform, Premium Trends, and Claim-Denial Patterns by State

Last reviewed: October 2026.

The 2026 roofing insurance report is The Roofing Brief Research Team’s annual read on the homeowners market as it affects roofs. It draws on state insurance regulators in Florida, California, Louisiana and Texas, the Florida Office of Insurance Regulation, the National Association of Insurance Commissioners, the Insurance Information Institute, Verisk and CoreLogic catastrophe loss estimates, and published rate filings (sources are listed with links at the end). The headline finding: roof age and roof condition now decide whether a policy is written, how a claim is settled and what the homeowner pays out of pocket. Our 2026 Severe Weather Roof Damage Report covers the loss side.

Methodology and sources

This report draws on primary and near-primary sources: state insurance department filings, residual market reports, NAIC data, carrier and regulator press releases, statute text from the Florida Senate, Verisk catastrophe loss bulletins, and Insurance Information Institute tables. The numbered source list at the end links each source. Where state data lags, we note the reporting period. Premium figures reflect HO-3 policies with $300,000 dwelling coverage unless stated otherwise. For state licensing rules see the 2026 State Roofing Code and Licensing Report.

State of the homeowners insurance market in 2026

National premium trends

The national average HO-3 premium hit about $2,543 in 2026, up from roughly $1,428 in 2020. That is a 78 percent increase in six years, against general inflation of about 24 percent over the same period. The Consumer Federation of America documented a 24 percent jump in the three years through 2024 alone. The gap between insurance inflation and headline CPI is the context for the rest of this report: when a carrier raises a rate, files a roof-age exclusion, or pushes a homeowner to Actual Cash Value coverage, it is responding to a loss ratio that has not behaved like a normal inflation curve.

State-by-state premium ranking

Table 1 ranks the ten most and ten least expensive states for HO-3 coverage in 2026. Aggregators publish different averages, so compare against the Insurance Information Institute tables before quoting a single figure.

Rank	State	2026 average HO-3 premium
1	Florida	$7,136
2	Louisiana	$6,354
3	Oklahoma	$5,858
4	Nebraska	$5,693
5	Kansas	$5,178
6	Texas	$4,860
7	Colorado	$4,712
8	Mississippi	$4,498
9	Arkansas	$4,396
10	South Dakota	$4,310
41	Oregon	$1,098
42	Washington	$1,061
43	Wisconsin	$1,055
44	Utah	$1,032
45	Idaho	$988
46	Nevada	$924
47	Delaware	$885
48	Vermont	$815
49	New Hampshire	$795
50	Hawaii	$659

Three states dominated the 2024 to 2025 rate-of-change rankings: Louisiana filed for a 27 percent statewide increase, California 21 percent, and Iowa 19 percent. From 2020 to 2025, Colorado homeowners absorbed the largest cumulative jump at 100.8 percent, followed by Iowa at 96.0 percent and Minnesota at 88.2 percent. If you are reroofing in Iowa, see our roofer guides for Cedar Rapids, Iowa City and Des Moines. Florida sits at the top of the level table but only filed a 0.4 percent statewide change for 2025, the smallest year-over-year move in the country, because the underlying SB 2A and HB 837 reforms had finally fed through the loss data. Related: Florida residential roofing cooldown June 2026.

The state carrier exits: where insurers are pulling back

Florida

Florida’s residual market, Citizens Property Insurance Corporation, peaked at 1.41 million policies in October 2023 in the wake of Hurricane Ian. As of March 2026, Citizens carries roughly 336,000 policies, a 76 percent reduction in about thirty months. The Florida Office of Insurance Regulation (OIR update, May 2024) reported new admitted carriers entering Florida after the 2022 and 2023 reforms, and Citizens filed an average statewide rate decrease for 2026 (Citizens rate filing, March 2026). Check those pages for the current policy counts and percentages.

The shrinkage is real but it sits on top of catastrophe exposure that has not gone away. Hurricane Ian (September 2022) caused $42-57 billion of onshore property insured loss per Verisk (industry total inclusive of NFIP exceeded $60 billion). Hurricane Milton (October 2024) is estimated by Verisk at $30 to $50 billion of industry insured loss, and other modelers published different ranges. Milton was the largest US insured-loss event since Ian. The recovery reflects reform, and the catastrophe exposure has not gone away. Roofing claims drove much of the litigation that the reforms targeted, and the Florida AOB roofing reform is the linchpin of the recovery.

California

State Farm General announced on May 26, 2023 that it would stop writing new homeowners, renters and business policies in California (State Farm California update). In March 2024 it followed up with a non-renewal of 30,000 high-catastrophe-exposure homeowners and rental dwelling policies plus 42,000 commercial apartment policies, beginning rolling non-renewals on July 3, 2024. In a September 2024 filing to the California Department of Insurance, the company projected its California property book could shrink from 3.1 million policies at year-end 2023 to about 2 million by year-end 2028. After the January 2025 Los Angeles wildfires, State Farm paused non-renewals for affected LA County policyholders.

The displaced policies have piled into the California FAIR Plan. Policy count grew about 276 percent from 2018 through 2024, climbed another 44 percent through 2025 to 668,600, and the plan filed a 29.1 percent rate increase to take effect in late 2026. First-quarter 2026 new-business volume slowed to about 20 percent below 2025’s pace, an early sign that the California Department of Insurance’s Sustainable Insurance Strategy, which conditions admitted-market rate approvals on a measurable percentage of writings in distressed ZIP codes, is starting to redirect the flow.

Louisiana

Louisiana Citizens grew sharply after Hurricane Ida (August 2021); policy counts vary by reporting period, so use the Louisiana Department of Insurance for the current figure. Premium volume tracked the same vertical line: $59 million in 2020, $618 million in 2023, $518 million in 2024. Hurricane Ida itself caused roughly $84.6 billion of total economic damage and roughly $36 billion of insured loss, making it the sixth-most expensive US hurricane this century.

Louisiana’s recovery is slower than Florida’s because the legal regime is different. Louisiana’s legal regime differs from Florida’s, and its Insure Louisiana Incentive Program offered matching grants to private insurers to take Citizens-eligible business. Check Louisiana statutes for the current AOB and attorney-fee rules.

Texas

Texas Windstorm Insurance Association (TWIA) closed 2025 with 284,846 active policies and approximately $126.5 billion of total insured value, both record highs. TWIA (twia.org) is the residual wind carrier on the Texas Gulf Coast. Related: The 2026 Aerial Roof Measurement Software Report. After Hurricane Beryl (Category 1, July 8, 2024), TWIA went from a $45.9 million surplus to a $413.5 million deficit and burned through the Catastrophe Reserve Trust Fund. Reinsurance spending for 2025 was projected by management at $230 million, a record outlay.

Texas hail is the other half of the Texas story. Carriers have responded with separate wind and hail deductibles, often written as a percentage of dwelling coverage (a 2 percent deductible on a $400,000 dwelling is $8,000), and with ACV-only roof endorsements on older roofs. Read the deductible in dollars before you buy.

The Carolinas and Georgia

North Carolina’s Beach Plan and Coastal Property Insurance Association, and South Carolina’s Wind and Hail Underwriting Association, are the wind-and-hail residual markets in the Carolinas; check each plan’s latest annual report for policy counts and exposure. The 2026 Roofing Hail and Storm Loss Database has the loss history. Georgia does not run a residual property pool, so Georgia rate changes show up in carrier filings with the state Office of Commissioner of Insurance.

AOB (Assignment of Benefits) reform

Florida: SB 2A and what changed

Florida Senate Bill 2A, signed by Governor DeSantis on December 16, 2022, did three things that mattered to roofing. First, it eliminated AOB for residential and commercial property insurance policies issued on or after January 1, 2023 (Florida Statute 627.7152(13)). A homeowner can no longer assign post-loss benefits to a contractor and let the contractor stand in the homeowner’s shoes against the carrier. Second, it abolished one-way attorney-fee shifting under Florida Statutes 627.428 and 626.9373, the provision that had let plaintiff lawyers collect statutory fees from carriers in first-party suits. Third, it shortened claim-handling deadlines for insurers. See the Florida Senate bill summary of SB 2-A for the exact deadlines.

HB 837, signed March 24, 2023, added a modified comparative negligence rule (a plaintiff more than 50 percent at fault recovers nothing), shortened the negligence statute of limitations from four to two years, and built a 90-day policy-limits safe harbor for bad-faith claims. Together, SB 2A and HB 837 are the most aggressive insurance tort reform package any state has passed since the California Proposition 103 era.

Other states following Florida’s lead

Other states have considered AOB and fee-shifting limits of their own, as Florida did in SB 2-A for policies issued on or after January 1, 2023. The rules differ by state and change by session, so contractors crossing state lines should check each state’s current statute rather than rely on a summary.

The pre- and post-reform litigation data

Florida OIR data shows personal-lines property litigation fell about 25 percent in the first half of 2025 versus the first half of 2024, after a 23 percent fall from 2023 to 2024, for a cumulative reduction of 36 percent since 2021. Auto glass litigation, a useful tort-reform indicator, dropped from 24,720 lawsuits in Q2 2023 to 2,613 in Q2 2024, an 89 percent decline. Florida’s ranking on the Institute for Legal Reform “nuclear verdict” league table fell from second in the country (2009-2022 cumulative) to tenth in 2024. A Milliman study estimated a 14.5 percent reduction in Florida property and casualty insurance costs from the combined effect of SB 2A and HB 837 compared with a no-reform path.

Claim denial patterns and rates

The 7 most common denial reasons

No public dataset ranks roof-claim denial reasons by share, so the table below lists the reasons that appear most often in denial letters and complaint files, with the type of policy language an insurer typically cites. For the appeal steps for each, see when your roof insurance claim is denied.

Reason	Typical policy language
Policy exclusion (flood, earth movement, gradual damage)	“We do not cover loss caused directly or indirectly by…”
Wear, tear, and deterioration	“Loss caused by wear and tear, marring, deterioration…”
Late notice / late filing	“Give prompt notice to us or our agent.”
Insufficient documentation	“Cooperate with us in the investigation…”
Cosmetic damage exclusion (paint, dents, granule loss)	“We do not cover cosmetic damage to roof surfacing…”
Pre-existing damage	“Loss in progress at policy inception is excluded.”
Faulty workmanship or maintenance	“Faulty, inadequate or defective workmanship…”

The more telling figure comes from NAIC market conduct data analyzed by the Wall Street Journal: 44 percent of claims at the five largest carriers closed without payment in 2025. That number captures denials, claims closed under the deductible and withdrawn claims, so it is a proxy for how often a filed claim fails to produce a payout, not a denial rate.

State DOI consumer complaint data

State insurance departments publish consumer complaint data, and the complaint mix tracks catastrophe exposure. Pull the complaint index for your state from its department of insurance and compare it with the national figure on the NAIC consumer site before choosing a carrier.

Roof-age underwriting: the 15-year wall

Which carriers refuse aged roofs

Carriers set roof-age rules in their filed underwriting guidelines, and they differ by company and state. Common mechanisms you will see are an inspection requirement at a stated roof age, an ACV or payment-schedule endorsement past a stated age, a surcharge for older roofs, and non-renewal when a roof fails inspection. Ask the carrier for the roof-age rule in writing, with the age and the remedy, before you renew.

If your roof is	Then ask your carrier
At or near the age where inspections start (many carriers use 15 years or so)	What inspection they accept, who may perform it, and whether a passed inspection removes any ACV endorsement
Subject to an ACV or payment-schedule endorsement	The depreciation or payment percentage by age (see actual cash value roof)
Replaced in the last few years	Whether a new-roof discount or full RCV settlement applies, and what proof they need (permit, invoice)
In Florida with Citizens coverage	The current Citizens eligibility and renewal rules for roof condition, on citizensfla.com

The ACV-only roof policy trend

Verisk’s 2024 Roofing Realities Trend Report puts US roof claim costs at over $30 billion for 2024 (see Verisk). Allstate’s scheduled roof depreciation option (also called the Roof Surfaces Payment Schedule endorsement) is one example of a product that formalizes the shift away from unrestricted full-RCV roof coverage. Whether a policy you are offered has one is shown in its endorsement list, so ask for the endorsement forms before you bind.

ACV vs. RCV: the math that catches homeowners

Standard depreciation schedules

Estimating platforms from Verisk (Xactware and Marshall & Swift/Boeckh) are commonly used by adjusters to compute Actual Cash Value. Percentages vary by carrier, and the illustrative curve below is for asphalt shingle roofs:

Roof age	Typical depreciation	Remaining ACV %
0-2 years	0-7%	93-100%
3-5 years	10-20%	80-90%
6-10 years	25-40%	60-75%
11-15 years	45-60%	40-55%
16-20 years	65-80%	20-35%
21+ years	85-95%	5-15%

Worked example: 18-year-old roof claim

A 2,400 square foot Houston-area home with an 18-year-old 3-tab asphalt roof is hit by a Texas hailstorm. The replacement-cost estimate from a licensed roofer is $15,000. Policy: HO-3 with 2 percent wind/hail deductible on a $400,000 dwelling limit. Roof endorsement: ACV settlement only.

Line item	Amount
Replacement cost (RCV)	$15,000
Depreciation (75% at age 18)	($11,250)
Actual Cash Value	$3,750
2% wind/hail deductible on $400K	($8,000)
Net check to homeowner	$0
Out-of-pocket to replace	$15,000

The same loss under an RCV policy with a flat $2,500 deductible: the first check is the ACV of $3,750 minus the $2,500 deductible, or $1,250, and the recoverable depreciation of $11,250 is paid when the work is complete, for $12,500 of total recovery (the $15,000 cost minus the $2,500 deductible). The difference between the two settlement paths is $12,500. That gap is the line item every roofing contractor needs to explain at the kitchen table. The math also frames why filing an insurance claim for roof damage requires a different playbook on an ACV roof than on an RCV roof.

Public adjuster regulation by state

Public adjuster fee rules differ by state. Florida runs a tiered system: 10 percent of claim payments for claims based on a gubernatorially declared emergency during the first year after the declaration, and 20 percent otherwise (Florida Statute 626.854(11)). Other states set their own caps or leave the fee to the contract, so read the fee clause and check your state insurance department before signing.

State	PA fee rule	Source
Florida	10% of claim payments for declared-emergency events in the first year after the declaration, 20% otherwise	FS 626.854(11)(b)
Other states	Statutory cap or contractual fee; differs by state	Your state insurance department

Public adjuster licensing also varies by state (Florida Statute 626.854 governs Florida): Florida licenses public adjusters and sets fee limits by statute, and other states set their own licensing, bond and education rules. Confirm the adjuster’s license with your state insurance department before signing.

The Class 4 impact-resistant shingle discount

Discount ranges by carrier

Class 4 is the highest impact rating under Underwriters Laboratories standard UL 2218 (see also the IBHS summary of UL 2218 tests). To qualify, a shingle must withstand the drop of a 2-inch steel ball from 20 feet (the kinetic-energy equivalent of a 2-inch hailstone falling at terminal velocity in a thunderstorm) onto multiple test locations without cracking or rupturing. Cosmetic dents are allowed, structural cracks are not. Carriers that offer an impact-resistant roof discount publish the percentage in their rate filings and on pages like State Farm’s homeowner discounts; the percentage and eligibility differ by state, so get the figure for your address in writing.

If you	Then
Are in a hail state and replacing the roof	Ask your carrier for the Class 4 discount percentage for your address and the documentation it needs (product listing, invoice).
Are in Florida	Ask about wind-mitigation credits, which reward wind features rather than impact rating.
Have a Class 4 roof already	Send the invoice and product data sheet at renewal so the discount is applied.

The discount is not the full economics story. Class 4 shingles cost more per square (100 square feet) than standard shingles, and the premium depends on the product and market. As an illustration with assumed numbers: if the extra cost on a 20-square roof is $1,000 and a 25 percent discount applies to a $1,800 annual premium, the saving is $450 per year and the extra cost is repaid in about 2.2 years. Replace the assumptions with your own quote and discount. For a deeper carrier-by-carrier read, see our Class 4 impact-resistant shingles guide.

Where Class 4 discounts apply

Class 4 shingles are rated under UL 2218 with a 2-inch steel ball dropped from 20 feet, and Class 4 discounts cluster in hail-exposed states in the central US, and Florida, with hurricane rather than hail exposure, is a notable absence from most impact-resistance programs. The list of eligible states differs by carrier and changes with filings, so check the carrier’s current state list instead of relying on a published map.

What this means for the market

For homeowners

Read the roof endorsement before signing. Ask three questions (the $8,000 deductible on a $400,000 dwelling at 2 percent in the example above shows why dollars matter): (1) is the roof settled on RCV or ACV; (2) what is the depreciation schedule; (3) what is the wind and hail deductible in dollars (not just percent). If any answer is unfavorable, shop the policy. A Class 4 roof installed before a renewal can earn a discount where one is offered. Homeowners in catastrophe-exposed states should ask each renewal whether the roof-age rule changed, and plan re-roof timing around it.

For contractors

The 44 percent claim-closed-without-payment rate is a useful number for sales conversations. Three implications. First, every storm-damage estimate now needs an ACV-versus-RCV sidebar so the homeowner knows what they will actually receive. Second, contractors working with Florida Citizens renewals should check the current Citizens roof-condition rules, because inspection requirements and who may perform them are set there. Third, assignments of post-loss benefits are void for new Florida policies (Florida Statute 627.7152(13)) and limited elsewhere, and contractors who built their model on AOB now need a direct-pay or financed retail model. See Florida roofing contractor license for licensing specifics.

For suppliers

For suppliers, the practical point is that insurance discounts and wind ratings drive which products homeowners ask for: Class 4 in hail states, and wind-rated products (Florida Building Code High-Velocity Hurricane Zone approvals) in Florida. Stock to the rating your market’s incentives reward.

Sources cited

1. Citizens Property Insurance Corporation, 2026 Multiperil Rate Filing, March 4, 2026, https://www.citizensfla.com/-/20260304-citizens-2026-multiperil-rates-to-drop-statewide (accessed June 16, 2026).
2. Florida Office of Insurance Regulation, “OIR Provides Update on Florida’s Strengthening Property Insurance Market,” May 18, 2024, https://floir.gov/home/2024/05/18/oir-provides-update-on-florida-s-strengthening-property-insurance-market (accessed June 16, 2026).
3. Florida Senate, SB 2-A (2022 Special Session A) Bill Summary, https://www.flsenate.gov/Committees/BillSummaries/2022A/html/2 (accessed June 16, 2026).
4. Florida Statute 627.7011 and HB 1611 (2024), https://www.flsenate.gov (accessed June 16, 2026).
5. State Farm Newsroom, “State Farm General Insurance Company: Update on California,” 2024 and 2025 updates, https://newsroom.statefarm.com/update-on-california/ (accessed June 16, 2026).
6. California Department of Insurance, “Sustainable Insurance Strategy,” https://www.insurance.ca.gov/01-consumers/180-climate-change/Sustainable-Insurance-Strategy.cfm (accessed June 16, 2026).
7. AM Best Data Insights, “FAIR Plan, E and S Growth Soars in California,” Carrier Management, February 10, 2025, https://www.carriermanagement.com/news/2025/02/10/271636.htm (accessed June 16, 2026).
8. Louisiana Department of Insurance, Hurricane Ida data calls, https://ldi.la.gov/news/press-releases (accessed June 16, 2026).
9. Texas Windstorm Insurance Association, 2025 Annual Report and Q1 2025 Fact Book, https://www.twia.org (accessed June 16, 2026).
10. Verisk, “Industry Insured Losses for Hurricane Milton” press release, October 2024, https://www.verisk.com/company/newsroom/verisk-estimates-industry-insured-losses-for-hurricane-milton-will-range-between-usd-30-billion-to-usd-50-billion/ (accessed June 16, 2026).
11. Verisk, “US Roofing Realities Trend Report 2024” (roof-claim total of $30B+), https://www.verisk.com (accessed June 16, 2026).
12. Insurance Information Institute, “Facts and Statistics: Homeowners and renters insurance,” https://www.iii.org/fact-statistic/facts-statistics-homeowners-and-renters-insurance (accessed June 16, 2026).
13. Consumer Federation of America, “Homeowners Insurance Premium Report” (24 percent three-year increase), https://consumerfed.org/press_release/new-report-finds-american-homeowners-faced-24-increase-in-homeowners-insurance-premiums-over-the-past-three-years/ (accessed June 16, 2026).
14. LendingTree, “State of Home Insurance 2026” (state-by-state cumulative change), https://www.lendingtree.com/insurance/state-of-home-insurance/ (accessed June 16, 2026).
15. Milliman, “How recent tort reforms are shaping insurance claims” (14.5 percent cost reduction estimate), https://www.milliman.com/en/insight/how-tort-reforms-shaping-insurance-claims-florida-georgia (accessed June 16, 2026).
16. Underwriters Laboratories Standard UL 2218, “Impact Resistance of Prepared Roof Covering Materials” (Class 4 test methodology), https://www.shopulstandards.com (accessed June 16, 2026).
17. Insurance Institute for Business and Home Safety, “Relative Impact Resistance of Asphalt Shingles: Summary of UL 2218 Impact Tests,” https://ibhs.org/wp-content/uploads/member_docs/Relative-Impact-Resistance-of-Asphalt-Shingles_IBHS.pdf (accessed June 16, 2026).
18. State Farm Homeowner Discount Schedule, https://www.statefarm.com/insurance/homeowners/discounts (accessed June 16, 2026).
19. NAIC Market Conduct Annual Statement data, https://content.naic.org (accessed June 16, 2026); Wall Street Journal analysis of claims closed without payment in 2025.

Methodology note

All premium figures use HO-3 policy benchmarks with $300,000 dwelling coverage, $1,000 standard all-other-perils deductible, and statutory wind and hail deductibles where applicable. Policy-count and exposure figures for Florida Citizens, California FAIR Plan, TWIA and Louisiana Citizens are as of the latest publicly reported period at the time of writing (Florida Citizens March 2026; California FAIR Plan December 2025; TWIA December 2025; Louisiana Citizens year-end 2024). Catastrophe loss estimates reflect mid-range industry consensus; individual model outputs (Verisk, CoreLogic, Moody’s RMS, Karen Clark) vary by up to 35 percent. State carrier exit narratives draw on company statements and regulator releases. The report is updated annually.