Hail Is Quietly Driving Up Home Insurance Costs: What Utah and Arizona Homeowners Need to Know
Hail Is Changing How Homeowners Pay for Roof Damage
Short answer: Hail is one of the biggest drivers of insurance losses in the U.S., and insurers are shifting more of that cost onto homeowners. The two biggest changes are higher, percentage-based wind and hail deductibles and more roofs covered at actual cash value (ACV) instead of replacement cost. In 2026, Fannie Mae and Freddie Mac also stopped requiring replacement cost coverage on roofs for the mortgages they back. Together, these changes mean many Utah and Arizona homeowners could pay far more out of pocket after a hailstorm than they expect.
Hurricanes and wildfires get the headlines, but hail does steady, expensive damage year after year. Estimates indicate hail accounts for 50% to 80% of all losses from severe convective storms, which include hail, thunderstorms and tornadoes (Insurify, citing Allianz Commercial).
That trend just hit close to home. In October 2026, NWS reports logged hail up to 2 inches in Mesa and Glendale and golf ball-size hail in Flagstaff and southern Utah (NWS reports via HAIL.org).
PRQ Exteriors is a BBB-accredited, Inc. 500 roofing company with a team of insurance experts who help homeowners through roof claims. Here is what is changing, what it means in Utah and Arizona and what homeowners and the professionals who advise them can do about it.
The Trend by the Numbers
Insurify's May 2026 report on hail and home insurance, which surveyed 1,000 insured homeowners in storm-prone counties, shows how widespread the problem has become (Insurify):
|
Finding |
Figure |
|---|---|
|
Share of hail in severe convective storm losses (Allianz estimate) |
50% to 80% |
|
U.S. single-family homes hit by hail 2 inches or larger in 2025 (Cotality) |
More than 600,000 |
|
Surveyed homeowners who said severe weather damaged their roof |
65% |
|
Of those, share who said hail caused the damage |
43% |
|
Of those, share whose roof damage cost $5,001 to $15,000 |
31% |
|
Of those, share who did not file a claim because the deductible was too high |
10% |
|
Typical cost to replace a roof, depending on material (Journal of Light Construction) |
$30,000 to $50,000 |
Why it matters: Expensive hail claims are leading insurers to share more of the financial burden with policyholders, according to Insurify. That usually happens in two ways, through the deductible and through how the roof itself is covered.
Shift 1: Bigger, Percentage-Based Wind and Hail Deductibles
Many homeowners are used to a flat deductible, like $1,000. But wind and hail claims often fall under a separate deductible calculated as a percentage of the home's insured dwelling value. These typically range from 1% to 5% of dwelling coverage, and insurers usually combine wind and hail under one deductible that applies to each claim (Insurify).
Here is how fast that adds up:
|
Dwelling coverage |
1% deductible |
2% deductible |
5% deductible |
|---|---|---|---|
|
$300,000 |
$3,000 |
$6,000 |
$15,000 |
|
$400,000 |
$4,000 |
$8,000 |
$20,000 |
|
$500,000 |
$5,000 |
$10,000 |
$25,000 |
Because the deductible is tied to dwelling coverage, it can also rise when your coverage limit goes up at renewal, even if you never changed your deductible percentage.
The real cost: In Insurify's survey, 10% of homeowners with roof damage said they did not file a claim because their deductible was too high. A higher deductible can mean living with damage that shortens a roof's life.
Shift 2: Roofs Covered at Actual Cash Value
The second shift is quieter but can cost even more. With replacement cost value (RCV) coverage, your insurer pays to replace your roof without subtracting depreciation. With actual cash value (ACV) coverage, it pays the depreciated value, so an older roof gets a smaller check. Some insurers have moved toward covering roofs at ACV, sometimes with a roof payment schedule based on the roof's age and material (United Policyholders).
The 2026 mortgage change: In March 2026, the Federal Housing Finance Agency announced changes to home insurance requirements for Fannie Mae and Freddie Mac loans, which back roughly 30 million mortgages. A key part of the change reduces roof coverage requirements from RCV to ACV (Insurify, FHFA). That can lower premiums, but it shifts more financial risk to the homeowner if the roof is damaged.
What that looks like on a real claim: Insurify gives this example of a 10-year-old asphalt shingle roof with a 20-year lifespan, a $30,000 replacement cost and a $5,000 deductible.
|
RCV coverage |
ACV coverage |
|
|---|---|---|
|
Replacement cost |
$30,000 |
$30,000 |
|
Depreciation (roof 50% through its life) |
Not subtracted |
– $15,000 |
|
Deductible |
– $5,000 |
– $5,000 |
|
Insurance pays |
$25,000 |
$10,000 |
|
Homeowner pays |
$5,000 |
$20,000 |
In Insurify's survey, 72% of homeowners said they would face financial or housing insecurity if their roof needed replacing and insurance did not cover the whole cost.
What It Means in Utah and Arizona
Utah and Arizona are not in the heart of "Hail Alley," but homeowners in both states are already carrying meaningful wind and hail deductibles, according to Insurify's quote data:
|
State |
Average wind/hail deductible (% of dwelling coverage) |
Average wind/hail deductible amount |
Average annual home insurance cost |
|---|---|---|---|
|
Arizona |
1.07% |
$3,508 |
$2,104 |
|
Utah |
0.81% |
$3,444 |
$1,319 |
|
Colorado (for comparison) |
1.31% |
$5,664 |
$3,996 |
Source: Insurify, May 2026
The takeaway: In both states, the average wind and hail deductible is well above a typical $1,000 flat deductible. Next door in Colorado, the state's Department of Regulatory Agencies found hail is the largest driver of home insurance cost increases in many counties, accounting for an average of 26% to 54% of home insurance costs, according to Insurify.
Recent storms are a reminder. The October 2026 storms brought hail up to 2 inches to Mesa and Glendale, golf ball-size hail to Flagstaff and an EF1 tornado to Heber-Overgaard (KJZZ). For homeowners filing claims from those storms, the details of their deductible and roof coverage matter right now.
What Homeowners Can Do Now
- Know your deductible in dollars. Find your wind/hail deductible on your declarations page and multiply the percentage by your dwelling coverage. That is what you would actually pay after a hail claim.
- Find out how your roof is covered. Ask your agent whether your roof is covered at replacement cost or actual cash value, and whether a roof payment schedule applies.
- Weigh premium savings against risk. A higher deductible or ACV roof coverage can lower your premium, but it can leave you paying much more after a storm.
- Ask what mitigation your insurer rewards. Insurify notes that many insurers offer discounts for impact-resistant materials, and recommends asking your insurer which mitigation measures they reward, then comparing quotes.
- Keep up with maintenance. Clearing gutters, trimming dead branches and fixing small problems can reduce storm damage and related costs.
- Get inspected after every significant storm. Hail damage is not always visible from the ground, and documenting it early makes any claim easier.
- Keep records. Save dated photos of your roof, inspection reports and invoices so you can show your roof's condition before and after a storm.
For Real Estate Agents, Lenders, Insurance Agents and Property Managers
These changes do not just affect homeowners. The professionals who advise them can help clients avoid expensive surprises.
Real estate agents: A roof's age and condition can affect a buyer's insurance options and costs. Encouraging a roof inspection before listing or during a purchase helps buyers understand what they are taking on, and a recent inspection report can make a listing stronger.
Mortgage lenders and loan officers: With Fannie Mae and Freddie Mac no longer requiring replacement cost coverage on roofs, some borrowers may choose ACV roof coverage to save on premiums. Making sure borrowers understand the trade-off protects them, and the asset backing the loan.
Insurance agents: Showing clients their wind and hail deductible in dollars, not just as a percentage, and explaining ACV vs. RCV before a storm can prevent frustration at claim time.
Property managers and HOAs: Hail can damage many roofs across a community in a single storm. A regular inspection and maintenance plan, like PRQ's asset maintenance program, helps catch damage early and keeps documentation ready for claims.
PRQ is glad to work with professionals who want a trusted roofing partner for their clients, from free inspections and photo reports to help navigating the claim process.
Frequently Asked Questions
Why are home insurance deductibles going up?
Hail and wind claims are expensive, and insurers are sharing more of that cost with policyholders, often through separate wind and hail deductibles calculated as a percentage of dwelling coverage.
What is a wind and hail deductible?
It is a separate deductible that applies to wind or hail damage. It is often a percentage of your home's insured dwelling value, typically 1% to 5%, rather than a flat dollar amount.
What is the average wind and hail deductible in Utah and Arizona?
According to Insurify data, the average is about $3,508 (1.07% of dwelling coverage) in Arizona and about $3,444 (0.81%) in Utah.
Did Fannie Mae and Freddie Mac change roof insurance requirements?
Yes. In 2026, the FHFA announced changes that reduce roof coverage requirements for Fannie Mae and Freddie Mac loans from replacement cost value to actual cash value. That can lower premiums but leaves homeowners with more risk if their roof is damaged.
Should I choose actual cash value roof coverage to save money?
It depends on your budget and your roof's age. ACV coverage can lower premiums, but on an older roof it can leave you paying a large share of a replacement after a storm. Compare the savings to what you could owe after a claim.
Can impact-resistant roofing lower my insurance costs?
Sometimes. Many insurers offer discounts for impact-resistant materials. Ask your insurer what qualifies before you choose a roof.
Don't Wait for the Next Storm to Find Out
Hail is not going away, and insurers are passing more of its cost to homeowners through bigger deductibles and ACV roof coverage. The best time to understand your policy, and the condition of your roof, is before the next storm hits.
Have questions about your roof or a claim? Schedule a free roof inspection, talk to PRQ's insurance experts or get an instant quote.
Sources
- The Next Insurance Crisis: Hailstorms Are Quickly and Quietly Driving Up Home Insurance Costs (Insurify, May 2026)
- Fannie Mae and Freddie Mac Remove Certain Homeowners Insurance Requirements (FHFA)
- Roof insurance: ACV versus replacement cost (United Policyholders)
- Wednesday, October 21, 2026 hail reports (NWS storm reports via HAIL.org)
- Heber-Overgaard was struck by a tornado, National Weather Service confirms (KJZZ)
This article is for general education and is not insurance or legal advice. Coverage, deductibles and requirements vary by insurer, policy and loan. Talk to your insurance agent or lender about your specific situation.