Cedar Shake & Asphalt Shingle Roof Insurability: What Buyers, Sellers, and Homeowners Need to Know

Cedar shake and asphalt shingle roofs just got a lot harder to insure, and if you’re not aware of the recent changes, you could be overpaying for insurance or struggling to find coverage at all. Here’s what’s happening, how it affects you, and what you can do to stay ahead of it.

Asphalt Shingle Roofs Are Becoming Harder to Insure

If your asphalt shingle roof is 10-15 years old, many insurance companies are making it significantly harder—and more expensive—to insure new polices. Even when coverage is available, rates can be up to three times higher than what they were before for current polices. Many insurers are also refusing to cover older asphalt shingle roofs altogether, meaning any damage could be your financial responsibility.

Cedar Shake Roof Coverage Is Disappearing

For homes with cedar shake roofs, insurance options are shrinking fast. If the rebuild cost of your home is under $1.5 million, you may still be able to find coverage, but insurance providers are increasingly hesitant to insure these roofs. Major companies like State Farm will no longer insure cedar shake roofs for new policies, and other insurers are starting to follow their lead.

Why Cedar Shake Roofs Are Difficult to Insure in Illinois

Cedar shake roofs have a timeless appeal and add character to a home, but from an insurance standpoint, especially in Illinois, they present significant risks. As a result, many major insurance companies, including State Farm, have stopped issuing new policies for homes with cedar shake roofs.

1. Fire Risk & Safety Concerns

Cedar shakes are a wood-based roofing material, making them highly flammable compared to alternatives like asphalt shingles or metal roofs. Even when treated with fire retardants, insurers still classify them as a higher risk. In wildfire-prone states like California, some companies have refused to renew policies for homes with wood shake shingles, a trend that has extended to other states.

2. Weather Vulnerability in Illinois

Illinois experiences extreme weather conditions, from heavy snow and ice in winter to high winds, hail, and thunderstorms in summer. Cedar shake roofs are particularly vulnerable to:

• Wind damage: Strong winds can lift and break cedar shakes more easily than other materials, leading to costly repairs.

• Hail impact: Unlike asphalt shingles, which may have impact-resistant ratings, cedar shakes can crack or split when hit by hail.

• Moisture retention & rot – Illinois’s humidity and rainfall contribute to mold, rot, and premature deterioration, increasing maintenance costs and claim rates for insurers.

3. State Farm’s December 2024 Decision

As of December 2024, State Farm no longer offers new homeowners insurance policies for homes with cedar shake roofs in Illinois. This change reflects the growing industry trend of insurers moving away from high-risk roofing materials. Homeowners with existing policies may still be eligible for renewal, but coverage could be contingent on roof condition, age, and other underwriting factors.

4. Other Major Insurers Following Suit

State Farm is not the only company pulling back from insuring cedar shake roofs. Across the country, insurers are tightening their underwriting guidelines due to rising claims costs.

• DaVinci Roofscapes reports that in wildfire-prone areas like California, many insurers refuse to renew policies for homes with real wood shake shingles.

• Wise Insurance Group noted that after a major fire in Plano, Texas, insurers stopped writing policies for homes with wood shingle roofs, even when treated with flame retardants.

These shifts illustrate a broader industry trend: insurers are moving away from covering cedar shake roofs due to fire risks, weather-related damage, and costly maintenance. With State Farm and other major insurers no longer covering cedar shake roofs, insuring these homes is becoming increasingly difficult. Homeowners should explore their coverage options now and consider upgrading to a more insurable roofing material to avoid future complications.

5. High Maintenance Costs & Limited Availability

Even with diligent maintenance, cedar shake roofs tend to have a shorter lifespan in Illinois’s climate. Many insurers prefer materials with longer, more predictable durability. Additionally, cedar shake roofs come with added challenges:

• High replacement costs: Installing a new cedar shake roof can be significantly more expensive than asphalt shingles or metal.

• Limited availability: Sourcing cedar shakes is becoming more difficult due to supply chain constraints and environmental regulations on logging.

• Increased insurance payouts: Because repairs and replacements for cedar shake roofs are costly, insurers see them as a higher financial risk.

What This Means for You

The changing landscape of roof insurability has major implications for buyers, sellers, and current homeowners. So, if you’re buying, selling or own a home with either of these roof types, here’s what you need to do: 

For Sellers:

• Consider replacing your roof (especially if it’s older) before listing your home to to expand your buyer pool and prevent insurance-related deal-breakers. A newer roof can significantly increase your home’s value and appeal.

• If you’re not replacing the roof, be prepared for buyers to negotiate on price due to potential insurance challenges.

For Buyers:

• Always check insurability before falling in love with a home. Your dream home can come with a nightmare insurance bill and quickly turn into a financial headache if you can’t find reasonable coverage.

• Check insurance costs and get quotes before making an offer on a home. What seems like an affordable home may come with unexpected insurance expenses or sky high premuims.

For Homeowners:

• If you have a cedar shake roof and are thinking of switching policies, start shopping for the right provider now. Waiting until your renewal could mean facing unexpected increases or losing coverage options.

  • Explore specialty insurers because some niche providers may still offer coverage but at a premium.

• If your roof is approaching 20 years old, be proactive and explore your options before coverage becomes an issue.

  • Replace the roof with an insurable material. Impact-resistant asphalt shingles, synthetic shakes, or metal roofing are typically approved by most insurers.

  • Be proactive with maintenance. Regular inspections, sealing treatments, and prompt repairs can extend the roof’s lifespan and improve insurability.

A Real Example from the Market

At The McKay Group, we’ve seen firsthand how these changes impact real estate transactions. A property we currently have listed at 5N100 Dover Hill Rd, St. Charles, IL 60175, originally had a cedar shake roof. The sellers had to replace roof because no insurance companies would insure the home. They struggled to find coverage for two reasons: First, they had a cedar shake roof and second, the replacement cost was calculated to be between 3.5M and 4.5M. The current owners had State Farm, but they stopped insuring new polices of cedar shake roofs on December 15th, 2024. This ultimately lead them to replace the roof with asphalt shingles.

The main concerns insurance companies had in terms of placing insurance on this property is due to the size and value of this home. A "high-net worth" insurance provider is required to offer coverage for the home. Amongst high net worth insurance providers, there are underwriting guidelines specific to the age and material of a roof on a home. Generally speaking, once the age of a roof exceeds 20 years, insurance providers will no longer offer full protection or will not offer home insurance coverage altogether. Also, a significant portion of home insurance providers will not accept wood shake roofs. Wood shake roofs generally increase the risk of a fire hazard at a given location and many builders default to asphalt shingle roofs for this reason. Every insurance provider in the state of Illinois will accept asphalt shingle roofs and prefer homes who have new roofs. Roofs are the largest point of exposure for a home and home insurance providers pay a significant portion of their losses to roof claims. The bottom line is home insurance providers rate significantly on the age and material of roofs. Once a certain threshold is crossed in terms of age of a roof, it becomes increasingly difficult to find a company who will accept the risk. 

Work with The McKay Group

Roof insurability is changing fast, and it’s impacting homeownership costs. Home insurance providers assess risk heavily based on the age and material of a roof. Once a roof exceeds a certain age, finding an insurer willing to offer full protection becomes increasingly difficult. The best way to stay ahead of rising costs and limited coverage options is to be proactive—whether you’re a buyer, seller, or current homeowner. As real estate agents we are here to educate our clients on these changes to ensure smooth transactions.

If you need guidance or have questions about how roof insurability impacts your home’s value and buying or selling process, reach out to The McKay Group. We’re here to help you navigate these challenges and make informed real estate decisions.

Ready to get started? Contact Debora and Roger today!