Tag Archives: Cross Insurance

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.

(“06880” often covers Westport’s real estate scene — and much more. If you appreciate, enjoy and/or learn from stories like this, please click here to support our work. Thank you!)

Ensure That Your Home Is Well Insured

Wildfires in California — and now Long Island. Hurricanes in inland North Carolina. Floods in Connecticut.

No place is safe from sudden, catastrophic weather events.

Center Street, last year. (Photo/Andrew Colabella)

As realtors, KMS Team at Compass highlight the many advantages of life in Westport.

But they advise clients about other things clients may not want to think about.

Like home insurance.

Our KMS friends pass along a recent report from the US Department of Treasury Federal Insurance Office. It says:

  • Home insurance is becoming more costly and harder to procure for millions of Americans. The costs of climate-related events pose growing challenges to insurers and their customers alike.
  • Average premiums increased 8.7% faster than the rate of inflation from 2018 to 2022. Some premium increases were much larger.
  • People living in the top 20% of ZIP codes, with the highest expected annual losses from climate-related perils, paid 82% more than those in the 20% lowest climate-risk ZIP codes.
  • Consumers in the highest risk ZIP codes faced 80% higher policy nonrenewal rates than those in the lowest risk ones.

Connecticut is in a high-risk zone:

The good news: While policy non-renewal rates sound ominous, during the study period they affected just 1.6% of policy holders in high risk areas.

As real estate advisors, KMS Team members talk often with insurance professionals. They learn how to avoid insurer obstacles during the selling, buying and closing process.

Tom Ayres and his team from Cross Insurance recently visited the Compass office.

To start, they said, buyers should have a trusted insurance broker run a “CLUE” (Comprehensive Loss Underwriting Exchange). A database can show claims reports, to understand what went on with a home and property over the last 7 years.

This includes loss history on structures near water — for example, claims because of water damage.

Flooding is the most common and costly natural disaster in the United States.

Insurers keep a close eye on water damage. They offer discounts to homeowners for being proactive, taking precautions like installing water leak devices, lightning rods, low temperature alerts, flood venting, sprinkler systems with alerts, and automatic shut-off capabilities.

Flood guidelines will be updated again in November. All homeowners should review the updates with their insurance agent. (The Cross Insurance team believes that coverages and zones will not change too drastically.)

Grove Point flooding. (Photo/John Kantor)

Many homeowners do not have flood insurance. KMS Team emphasizes: Check with your agent!

The second most common concern is the roof.

It’s all about the age, condition, material and shape, KMS says. Those elements impact the overall integrity or eligibility for coverage.

What works in certain parts of the country may not work in another. For example, cedar/wood roofs are okay in Connecticut, but not Colorado. Metal is fine in Vermont, but not Texas.

Shape matters too: peaked, flat, mansard, gambrel, hip, slate?

What kind of roof do you have?

Insurers and inspectors now use “roof scores,” determined through drone photos.

These also help determine replacement costs. If a roof is 15 years old, coverage may include 100% replacement. But as the roof ages, replacement coverage may drop.

Other home and property issues include:

  • Electrical system (knob and tube wires, cloth wiring)
  • Asbestos (wrapped pipes, insulation, linoleum tiles, etc.)
  • Buried oil tank
  • Pools that are unfenced, or with a diving board
  • Exterior insulation and finishing of the residence.

Renovations are an important insurance topic too. Will the work be minor or major? “Will you raze (or raise) your home?

Renovating and/or raising a home can affect insurance rates.

Coverage rates can vary, based on the use of the home and property. Is it occuped full time? Rented? Or are the owners rarely there?

 

The best way to keep insurance rates in check, KMS says, is to be proactive. Take steps to remedy aging elements of your home.

And keep in touch with your insurance experts. Let them know if you put on a new roof or add safeguards.

Insurance agencies work with a variety of insurance companies. They can match your home’s condition and needs with the best one.

(“06880” regularly covers Westport’s real estate scene. If you enjoy this — or any other feature on your hyper-local blog — please click here to support our work. Thank you!)