The Shift in Chicago Roofing: From Insurance Claims to Retail Purchases and What It Means for Homeowners

The roofing industry in Chicago is undergoing a significant transformation in 2026. For years, many homeowners relied on insurance claims to cover roof repairs or replacements after storms or damage. Today, a growing number of homeowners are turning to retail purchases instead. This shift reflects changes in insurance policies, contractor preferences, and consumer financing options. Understanding these trends can help homeowners make better decisions about their roofing needs and prepare for future expenses.

A roofing contractor replacing shingles on a Chicago home roof

Why Insurance Claims Are Declining in Roofing

Insurance claims used to be the primary way homeowners paid for roof repairs or replacements. However, several factors have reduced the reliance on insurance:

• Higher Deductibles: Many insurance companies have increased deductibles for roof damage claims. Instead of a $500 deductible, some policies now require $2,000 or more before coverage kicks in. This means homeowners pay more out of pocket, making small to medium repairs less likely to be claimed.

  
  

• Reduced Coverage for Roofs: Insurers have tightened coverage on roofs, especially for older roofs. Many policies exclude code requirements, dents to metals, and reduce the payment for the roof based on its age. This leaves many homeowners without insurance help for common roofing issues.

  
  

• Rising Premiums: Premiums have increased dramatically over the past five years. A regular sized suburban home once cost $900 annually to insure. That same home could be over $2500 for the same policy today. This has led many homeowners to thin our their coverage and increase deductibles to keep the cost of living within reach.

  
  

According to the Illinois Department of Insurance, the average deductible for roof claims in Chicago increased by 40% over the past five years. Meanwhile, the number of roof-related claims dropped by nearly 25% in the same period. This data shows a clear trend away from insurance claims for roofing.

Why Contractors Prefer Retail Contracts

Some contractors in Chicago are beginning to favor retail contracts over insurance claims for several reasons:

• Faster Payments: Insurance claims involve lengthy approval processes, inspections, and paperwork. Retail contracts allow contractors to start and complete projects more quickly, improving operations.

  
  

• Lower Risk of Disputes: Insurance claims often lead to disagreements over damage assessments and coverage limits. Retail contracts reduce these conflicts since homeowners agree upfront on the scope and cost.

  
  

• Increased Flexibility: Insurance claims require specific materials and budgets, while retail contracts let homeowners choose based on their preferences, offering greater personal style freedom.

  
  

• Simplified Project Management: Handling insurance claims requires contractors to coordinate with adjusters and insurers, adding complexity. Retail projects allow contractors to focus solely on the homeowner’s needs.

  
  

A Chicago roofing company reported that retail contracts now make up over 60% of their business, compared to just 35% five years ago. This shift helps contractors maintain steady work and improve customer satisfaction.

How Financing Options Make Retail Purchases More Accessible

One reason homeowners increasingly choose retail purchases is the growing availability of financing options. These options make it easier to afford roofing projects without relying on insurance:

• Low-Interest Loans: Many lenders offer home improvement loans with competitive interest rates. These loans spread the cost over several years, reducing upfront expenses.

  
  

• Payment Plans: Roofing companies often partner with financing firms to provide flexible payment plans. Homeowners can pay monthly instead of a lump sum.

  
  

• Credit Cards and Home Equity Lines: Some homeowners use credit cards or home equity lines of credit (HELOCs) to finance roofing. These options provide quick access to funds with manageable repayment terms.

  
  

• Government Programs: Certain local and federal programs offer grants or low-interest loans for home repairs, including roofing, especially for energy-efficient upgrades.

  
  

A survey by the National Roofing Contractors Association found that 45% of homeowners who financed their roofing projects used retail financing options, up from 30% five years ago. This increase aligns with the decline in insurance claims.

What This Means for Chicago Homeowners

The shift from insurance claims to retail purchases has several implications for homeowners:

• More Control Over Roofing Choices: Without insurance restrictions, homeowners can select materials, designs, and contractors that best fit their needs and budgets.

  
  

• Need for Budget Planning: Since insurance may not cover roofing costs, homeowners should plan for repairs or replacements as part of regular home maintenance budgets.

  
  

• Importance of Comparing Financing Options: Homeowners should research and compare financing offers to find the best terms and avoid high-interest debt.

  
  

• Understanding Insurance Policies: It remains important to review insurance policies carefully to know what roof damage is covered and what is not.

  
  

• Building Relationships with Trusted Contractors: Retail purchases often involve direct contracts with roofing companies. Establishing trust and clear communication is essential for a smooth project.

  
  

The Chicago roofing market is evolving, and homeowners who stay informed will benefit from better choices and financial planning.