As claims costs for roof damage caused by heavy storms and natural catastrophes have soared in recent years, homeowner’s insurers have become increasingly selective about the age and type of roof a policyholder has.
Insurers are increasingly requiring homeowners to replace old roofs to avoid policy non-renewal or limited coverage for roof damage. What is considered “old” varies by roof type. Slate and tile roofs have much longer lifespans if properly maintained, but insurers will scrutinize asphalt and wood shake shingles because they tend to erode more quickly.
The changes are leaving many homeowners in a bind as they seek coverage during a period of rising premiums fueled by frequent natural catastrophes and escalating rebuilding costs.
Roof repair and replacement costs reached $31 billion in 2024, up nearly 30% from 2022, according to data analytics firm Verisk. Wind and hail claims have been major drivers of these costs, and roof losses now account for more than one-quarter of residential claims costs.
What insurers are doing
Standard asphalt shingle roofs receive some of the greatest scrutiny. While underwriting standards vary, many insurers become more cautious once an asphalt roof is 10 to 20 years old.
Even if an insurer agrees to cover an older roof, it may only insure it on an actual cash value basis. That means a claim payment reflects the roof’s depreciated value rather than the cost of installing a new one.
Roof material also plays an increasingly important role.
Wood shake and wood shingle roofs have become more difficult to insure because they pose a greater fire risk. Some insurers no longer cover them, while others may require proof that the roof has been treated with fire-retardant materials.
Flat roofs also draw greater scrutiny because they don’t drain water as efficiently as sloped roofs. Standing water can accelerate deterioration and increase the risk of leaks, so insurers may require evidence that flat roofs are well maintained.
Regular maintenance has become more important than ever. Homeowners should promptly replace damaged shingles, keep gutters clear, remove debris and repair small problems before they become expensive claims. Keeping records of inspections and repairs may help prove that an older roof remains in good condition.
Enter the drones
Insurance companies are increasingly using drones, aerial photography, satellite imagery and artificial intelligence to inspect roofs remotely.
These technologies can identify missing shingles, deteriorating flashing, ponding water and other signs of wear within minutes. Some homeowners have received requests for repairs or even nonrenewal notices based on conditions discovered during aerial inspections.
The technology also allows insurers to inspect homes quickly after major storms and monitor roof conditions throughout the life of a policy. For homeowners, that means roof maintenance is more visible than ever.
Preferred roofs
While every insurer has its own underwriting guidelines, roofs made of durable, noncombustible materials generally receive the most favorable treatment. These include:
- Metal roofs — Highly resistant to fire, wind and many weather hazards, these can last 40 to 70 years or longer with proper maintenance.
- Slate roofs — Among the longest-lasting roofing materials available, slate roofs often remain serviceable for 100 years or more. They resist fire, insects and rot.
- Concrete and clay tile roofs — These are durable, noncombustible roofing systems that perform well in many climates, although they can crack under heavy impacts.
- Impact-resistant asphalt shingles — These are designed to withstand hail and high winds better than standard asphalt shingles. Some insurers may offer premium discounts for homes with qualifying Class 4 impact-resistant shingles.
The takeaway
Regardless of roof type, insurers are increasingly looking for one thing above all else: proper maintenance. Keeping up with repairs and replacing a roof before it becomes a significant underwriting concern may make it easier to obtain affordable homeowner’s insurance.
If you have questions about your roof and insurance, please give us a call.