Millions of homeowners are experiencing sticker shock when it comes to increases in home insurance costs—that is, if they can get home insurance at all. In places like Florida and California where claims resulting from climate change disasters have skyrocketed in recent years, some homeowners are finding it nearly impossible to get affordable coverage to protect their home.
That’s why making improvement decisions that could help lower the cost of insurance premiums is more essential than ever. This is particularly true when it comes to reroofing decisions.
Depending on the region, it’s important to know that insurance companies evaluate not only the age, condition and shape of a roof when determining costs, but the material used. To understand how a roof plays a role in home insurance premium costs, consider it from an insurer’s point of view.
In general, here are five things insurers look for when it comes to evaluating how protective a roof is (hence, how it may help guard against costly damage and repairs):
1. Is the roof made from quality, highly durable materials?
Metal roofs are more durable and oftentimes the most favored by insurance companies when they consider potential discounts. Slate and tile are also strong against fire, rotting and insects but they can crack and are heavy. Asphalt can be damaged by severe weather extremes. Wood roofs are least favored by insurance companies due to fire danger and the threat of displaced, rotten or worn out shingles which can cause damage. In some areas, a homeowner may be required to apply a fire retardant to get coverage, or they may be denied coverage altogether.
Especially in hurricane and hail regions where flying debris and severe impacts cause millions of dollars in rooftop damage every year, states like Florida and Texas use ratings for rebate programs such as UL Standard 2218 classification. UL 2218 is a rating system that assesses the impact resistance of shingles. Underwriters Laboratories (UL) tests shingles by dropping steel balls of various sizes onto them from different heights to simulate hail strikes. The shingles are then graded on a scale of Class 1 to 4, with Class 4 being the highest rating and the most impact resistant.
2. What shape is the roofline?
Many homeowners don’t realize the shape of their roof can affect performance. For example, hip roofs have inclines on all sides, so to an insurance carrier, this means they can hold up against higher winds without being blown off. Gable roofs are the most common in the U.S. and look like an upside-down V. These roofs can be more vulnerable to high winds, but they can shed water and debris easily. Flat roofs have no pitch or slope and typically aren’t favored by insurance companies because flat roofs pool water easily. Again, the type of material and installation methods chosen can help up the durability and protection of a roof, no matter what the shape.
3. How was it installed?
An insurance company could deny a homeowner’s claim if the roof was not installed by a certified, licensed professional. Experienced installers can help navigate proper local building codes and recommend ways to further increase the protection and longevity of a roof through methods, like choosing the proper underlayment, using the right attachments and clips, and making sure the roof is weather-tight.
4. How old is the roof?
Generally, insurance companies charge homeowners more on their home insurance premium for older roofs. However, quality roofing materials can last longer than other types with no compromises in performance.
That could impact the policy a homeowner chooses. Typically, a roof will be covered by actual cash value or replacement cash value. If a home’s insurance policy is for actual cash value, then the insurance carrier will pay the actual cash value of the roof at the time of covered loss (hurricane, for example). The insurer calculates the actual cash value of the roof, minus the depreciation cost according to the roof’s age, and, of course, minus the deductible. If the roof is older, the higher the depreciation value.
If a home insurance policy is for replacement cash value, then the insurance carrier will pay for the replacement cost value of the roof, which means the replacement cost value minus the deductible. Under replacement cost value, there is no deduction for depreciation which makes sense for more durable roofs like metal which should not be subject to standard depreciation evaluations given the fact they last longer than other types.
5. How well is the roof maintained?
To help extend the longevity of any roof and reduce the risk of filing a claim, proper maintenance and upkeep are essential. Homeowners should keep gutters clean, replace damaged or broken shingles, remove any debris (branches, leaves, moss and mold), prune overhanging branches, check for pests and have the roof routinely inspected every two to three years.
The Metal Roofing Alliance encourages homeowners to carefully review their policies to know if they have the right coverage for potential perils particular to their region, such as hurricanes and hailstorms. Document everything, including upgrades made to the roof and keep a paper trail. If homeowners installs a more reliable roof, they should let their insurance agent know because they may qualify for even more cost savings.
For more information, download the free Residential Metal Roofing Buyer’s Guide.
