At Troxell, we’re committed to helping our clients stay ahead of industry changes that impact their homes and budgets. In 2025, several key shifts in the personal insurance market are affecting homeowner policies—especially in Central Illinois, where severe weather events are becoming more frequent and costly. Here's what you need to know about roof coverage, cosmetic damage exclusions, and wind/hail deductibles.
1. What kind of roof coverage do you really have?
Illinois homeowners are seeing a shift from Replacement Cost Value (RCV) to Actual Cash Value (ACV) for roof claims—especially for roofs older than 10 years. RCV pays to replace your roof with similar materials, while ACV deducts for depreciation, often leaving homeowners with significantly lower payouts
So what does this mean for you if a storm damages your 20-year-old roof?
A 20-year-old roof with a replacement cost of $10,000 might only be valued at $4,000 under ACV. After a $1,000 deductible, your payout could be just $3,000. This change is driven by rising repair costs and the increasing frequency of hail and wind damage across the Midwest
Some insurers are also introducing Roof Payment Schedules (RPS), which base payouts on the age and condition of your roof. These schedules may offer lower premiums but can result in reduced coverage for older roofs
2. Does your insurance cover dents and dings?
Another trend affecting Illinois homeowners is the exclusion of cosmetic damage from coverage. This means that if your roof or siding is dented by hail but remains functional, your insurer may not cover repairs. While this helps insurers manage costs, it can leave homeowners with visible damage that affects curb appeal and resale value.
No one likes pulling into their driveway every day and seeing hail dents across their siding or gutters.
At Troxell, we recommend reviewing your policy to understand whether cosmetic damage is excluded—and discussing options for endorsements that may restore coverage.
3. Why your wind and hail deductible might be higher than you expect
Wind and hail deductibles are no longer just flat fees. Many insurers now use percentage-based deductibles, calculated as a percentage of your home’s insured value. For example, a 1% deductible on a $300,000 home means you pay $3,000 out of pocket before coverage begins.
That's a big jump from the $1,000 flat deductible many people are used to.
In Illinois, State Farm has implemented a mandatory 1% wind/hail deductible for all homeowner policies, citing the state’s high frequency of hail damage—second only to Texas
This change reflects a broader trend across the Midwest, where insurers are adjusting policies to manage rising catastrophe losses.
Why This Matters in Central Illinois
Central Illinois has seen a surge in severe weather events, including convective storms and hail outbreaks. These events are driving up claims and premiums. In fact, one national insurance carrier recently raised homeowner rates in Illinois by an average of 27%, citing losses that exceeded premiums collected
As a result, homeowners must be more proactive than ever in understanding their coverage and preparing for potential out-of-pocket costs.
If your rates go up, do you know exactly what you're paying for - and what you're not?
Troxell’s Recommendations for Illinois Homeowners
- Review Your Policy Annually: Understand whether your roof is covered under RCV, ACV, or a roof schedule.
- Inspect and Maintain Your Roof: Regular maintenance can help preserve coverage and reduce claim denials.
- Understand Your Deductibles: Know whether your wind/hail deductible is flat or percentage-based.
- Ask About Endorsements: We can help you explore options to restore or enhance coverage for cosmetic damage or older roofs.
- Partner with a Local Agent: Troxell’s team is here to help you navigate these changes and ensure your policy fits your needs.
When was the last time you reviewed your policy? Do you know if your deductible is flat or percentage-based? We can help you understand your policy if you have questions.
The insurance landscape is evolving, and Central Illinois homeowners are feeling the impact. At Troxell, we’re here to guide you through these changes with clarity and confidence. Whether you're reviewing your roof coverage or preparing for storm season, our local experts are ready to help you protect what matters most.
Insurance is changing fast, but you don't have to figure it out on your own. We live and work right here in Central Illinois too - and we're here to make sure your family and your home are protected.
Ready to review your coverage? Our team is here to help. Reach out today and we'll walk through your options together.