Homeowners Insurance: Up On The Roof

Last month’s heavy rains forced many homeowners to think about their roofs.

Though hardly out of sight, roofs are often out of mind. Unless something happens to them. Or unless we realize they’re getting on in years.

You may have even heard that a house with an older roof is uninsurable.

The KMS Team at Compass knows all about roofs. Now they’ve collaborated with 2 experts at Cross Insurance, Rob Vaccaro and Mark Wilhelm, to provide “06880” readers with “Roofs 101.”

Working on Morningside Drive South (Photo/Bob Weingarten)

It is important to note that there is no roof age at which a home suddenly becomes uninsurable. Instead insurance companies look at a combination of factors, including the roof’s age, condition, material, maintenance history and the overall risk associated with the property.

Not all insurance companies have the same underwriting guidelines. A roof that one firm will not insure may still be acceptable to another.

How old is too old? Many carriers become more cautious when a roof reaches 15 to 20 years of age , particularly with asphalt shingles or wood shakes.

However, a well-maintained roof in excellent condition of that age and/or type may still be insurable with some carriers. Another company may require repairs or replacement before offering coverage, while a third may insure the home but exclude the roof from certain types of coverage.

What impact does type of roof have? Insurance companies consider both the likelihood that a roof will sustain damage, and what it could cost to repair or replace.

This varies based on the material used. Asphalt shingles are common and relatively economical to replace, which can make them easier to insure.

Metal roofs can perform well against wind and fire, and may be viewed favorably by some insurers. Clay tile and concrete roofs are durable, but repairs can be expensive and may require specialized labor.

Slate roofs can last for generations — sometimes a century or more — but replacing slate can be a significant expense.

Wood shake roofs may receive additional scrutiny because they require ongoing maintenance. and can present additional fire and weather-related concerns.

The bottom line: A more durable roof doesn’t necessarily mean a lower insurance premium. While durability can reduce the likelihood of a claim, specialty materials can also increase the cost of rebuilding.

Care and maintenance of a roof — especially during bad weather — is important.

Are you insured for replacement cost or actual cash value? One of the most important things for homeowners to understand is how their policy would settle a roof claim.

With Replacement Cost Value coverage, a policy generally pays the cost to repair or replace covered damage with similar materials, without deducting depreciation for age, subject to the policy’s limits and deductible.

With Actual Cash Value coverage, depreciation is taken into account. As a result, an older roof could produce a significantly smaller insurance payment following a covered loss.

This distinction can be easy to overlook, but create very different outcomes after the same type of storm damage. For homeowners it’s worth knowing not just whether your roof is insured, but how it is insured.

Are you insured for storms, wind and falling trees? Standard homeowners policies generally cover sudden and accidental damage caused by certain perils, which can include things like windstorms, hail, falling trees, and heavy ice or snow.

But pay attention to deductibles. Depending on the policy, a homeowner may have a standard dollar deductible, while other policies may have separate deductibles for hurricanes, named storms, wind or hail — or even specifically for roof damage.

That distinction can make a meaningful difference in premiums and claims.

Insurance carriers assess roof damage in many ways. 

How does an insurance company know how old your roof is? Insurance companies use a variety of sources to determine the age and condition of a roof, including:

• Information provided by the homeowner
• Building permits
• Contractor invoices
• Previous insurance records
• Physical property inspections
• Aerial and satellite imagery
• Drone photography
• Third-party property databases.

Technology plays an increasingly important role in how insurers evaluate properties. But those records aren’t always perfect. Homeowners should hold onto roof installation records, contractor invoices, inspection reports and documentation of repairs or maintenance. Having that information readily available can help if an insurer has questions about the age or condition of a roof.

Yet a roof’s age is only part of the story An aging roof doesn’t necessarily mean it’s time to panic. or that your home is automatically uninsurable. What matters is the bigger picture: the age and condition of the roof, materials used, history of maintenance, insurance carrier guidelines. and the way your policy handles roof claims.

If you’re thinking about selling your home, it’s worth understanding these issues before putting a house on the market. An older roof can raise questions during the buyer’s insurance process, and having documentation about its installation, maintenance and condition can be helpful.

As Rob and Mark of Cross Insurance say, “One of the biggest misconceptions is that a home becomes uninsurable once a roof reaches a certain age. In reality, insurers look at the roof’s age, condition, material, and maintenance history, and every company evaluates those factors differently.”

For home buyers and sellers, the takeaway is simple: Don’t judge a roof — or its insurability — by age alone.

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