ROOF COST & PRICING GUIDE

Roof Replacement Costs & Types

As you consider purchasing a new roof replacement, this cost and pricing guide will help you develop an initial budget and plan for the cost of a new roof. Final prices will vary by location and type of roofing materials purchased.

There are a number of factors that go into the final price of your new roof, so the short answer to how much it costs is, “it depends.”However, for reference, the average cost of a new roof in the Atlanta area is about $12,500.

Some roofs can cost as little as $8,000, while other can exceed $30,000 or more, all depending on the complexity of the roof and the cost of the materials used.

There are two types of new roof purchases:

1. Retail roof replacement (full pay or financed)

2. Insurance roof replacement (cost offset by insurance due to damage)

Let’s discuss each of these, beginning with how the retail cost is determined.

Retail Roof Replacement:  Things that determine and affect the overall cost.

Let’s break down the factors that affect the cost and price of a new retail roof.

1. How large is your roof? Remember, the size of your roof doesn’t correlate directly to the square footage of the your home. A modest single story ranch home can have a much larger roof that a large, two story home on a basement. Even though the square footage of the ranch home may be smaller, the overall footprint of the ranch is larger, so the roof will be larger, too.

2. What type of roof do you have? Is it a basic gable roof (the kind you think of when you drew a house as a kid)? Or is it much more complex, with lots of variations. In roofing terms, how “cut-up” is your roof.

3. How dangerous is your roof? The more “risky” it is to work on your roof, the more it will cost. For example, is the lowest point of your roof just one story off the ground, or is it two or more? Additionally, how steep is your roof. The steeper the roof, the more dangerous it is and the more equipment is needed to safely install the roof.

4. Which shingle do you want? Like most things, there are lots of options available. These options range from basic, builder grade, called 3-Tab shingles, to designer style shingles called Architectural Lifetime. There’s even a luxury class of shingles with about every option you could imagine.

5. What all is being replaced? Your roof is so much more than just shingles. There’s underlayment, ventilation, skylights, and flashing (special metal that protects the transitions from the roof to the walls of the home). To see a full breakdown of a roof installation, check out our What Goes Into Your New Roof article.

6. Who you choose to have your roof replaced with? There are a variety of companies, ranging from manufacturer certified contractors to handymen. Consider focusing on choosing a contractor with experience and who offers a warranty on their work.

We hope this will be helpful for you in determining how much your new roof may cost. However, there is another factor that can greatly impact your total out-of-pocket expense on your new roof, and that’s replacing your roof through your homeowner’s insurance. While not everyone will qualify for this, it’s important to understand how it work and know if you qualify, so you don’t overspend on your roof replacement.

Insurance Roof Replacement:  How Insurance approval affects your total roof cost.

The key to determining if insurance will pay for your new roof is to first determine if it has been damaged. To do so, it must be inspected, either in-person on the roof or by drone, because the damage isn’t visible from the ground. A quality roofing contractor in your area should be able to assist you with this, as we don’t recommend that homeowners access their roof.

Next, if damage is found, contact your homeowner’s insurance company to have an adjuster come out and verify the damages. We recommend you also have your roofing contractor meet your adjuster so they can review the damages together. and write an Xactimate estimate for how much your roof will cost.

When insurance companies pays for the replacement of your roof, the cost will be determined by replacing the material you currently have on your roof, with like kind and quality, or “same for same.” So, if you have a 3-Tab shingle, then insurance will pay for a new 3-Tab shingle to replace it. The entire cost of the replacement of your roof will be provided to you in the form of an Xactimate estimate. Xactimate is a software used by insurance companies and contractors alike, to determine the labor and material costs based on location.

What does an Xactimate estimate include?

1. Size of your roof and shingle type

2. Underlayment

3. Upgraded Code items (if you have Ordnance & Law)

4. Ventilation

5. Pitch of the roof

6. Roof Height

7. Damaged metal components

After accounting for the materials damaged on the roof, your Xactimate estimate will have a total Replacement Cost Value (RCV). The RCV consists of 4 parts:

1. Actual Cash Value (ACV)

2. Deductible

3. Depreciation, usually recoverable (DEPREC)

4. Supplement, usually is added after the project is complete for items that weren’t paid for on the original estimate.

Here’s the formula for your insurance estimate: RCV = ACV + Deductible + DEPREC + Supplements

Understanding your Insurance Estimate

Actual Cash Value (ACV)

The ACV of the roof is determined by the age of the roof. The insurance adjuster calculates the ACV based on the percentage of the roof life remaining. For example, if your roof is 10 years old, and your shingle has a 20 year life, then the ACV would be 50% of the cost of the roof replacement. 

Deductible

The deductible is the amount that you pay out of pocket for an insurance claim before your insurance company pays for the remainder of the loss. Typically, the deductible on a homeowner’s policy is $1,000. However, deductibles can be as little as $500 and as high as 2% the value of your home, so it’s important to know what your deductible is when determining how much your out-of-pocket costs will be.

Depreciation, usually Recoverable (DEPREC)

The Depreciation can be confusing because it is actually a reimbursement. This is money the insurance company sends you (recoverable) when you submit proof that the roof was replaced. The depreciation is the remaining balance of the full RCV, minus your deductible. Note, a small number of policies are ACV only, meaning that the Depreciation is not recoverable. If you are unsure of what type of policy you have, contact your insurance company.

Supplement

Supplements are determined during and after your roof replacement. Supplements are deficiencies in your original Xactimate estimate from the insurance company. These deficiencies are for labor and material items needed to complete your roof installation, so they must be accounted for. Think of it like a reimbursement for work done, that once receipts or photos are sent into the insurance company, they will reimburse you for that work in the form of a supplement. 

Here’s a sample breakdown of RCV:

RCV - $12,500

ACV - $5,250 (assuming the roof is 50% aged and deductible is $1,000)

DEDUCTIBLE - $1,000

DEPREC - $6,250

SUPPLEMENT - TBD (reimbursement for items needed, but not originally included)

Can I upgrade my shingle from what I have?

The purpose of your insurance policy is to ensure you are made whole if a loss occurs. This means they are responsible for only paying for the kind and quality of shingles you currently have. However, that doesn’t mean you can’t choose to upgrade your shingles and pay the difference in the cost. Because the labor costs are generally the same between basic 3-Tab shingles and designer style Architectural Lifetime shingles, the only cost to upgrade is the cost of the upgraded shingles. Typically, the cost to upgrade between these two shingle types in around $1,000.

Some common upgrades are:

1. Designer Style Architectural Lifetime Shingles

2. Synthetic Felt

3. Additional Ridge Vents

4. Special Accessories (i.e. skylights, power ventilation)

We know purchasing a new roof is complex and can be confusing. If we can help in any way, feel free to contact us. Our goal is to make your roofing purchase as smooth as possible.

Related Links:

• What Goes Into Your New Roof