New Roof Guidelines for Insurance: What You Need to Know

October 30, 2024

Insurance companies or “carriers” have started to enforce very specific underwriting guidelines on roof acceptability. Homeowners can no longer estimate, guess or assume a roofs age when applying for or renewing home property insurance. Like property values, your agent needs to provide this to the insurance carriers’ underwriter before receiving a quote for your premium.

In the past, estimates were acceptable on roofs as policies often did not restrict coverage because of age.  That has all changed.  Roof age and coverage requirements are now an integral part of client/agent conversations.

Rising Roof Claims: A Growing Crisis 

Roof-related insurance claims have skyrocketed, with damages from storms doubling from $30 billion in 2022 to $60 billion in 2023. This surge, fueled by inflation, supply chain issues and more severe weather, has driven up costs, with the average claim increasing by $2,000.

States Most Affected by Roof Claims

Regions experiencing severe weather like Texas, Florida, Minnesota, Arkansas and Nebraska as well as other parts of the Midwest have seen the highest volume of roof claims. Convective storms, including hail and tornadoes, have expanded into new areas, like the North and Southeast making unpredictable weather a nationwide issue. While Texas consistently ranks as one of the most expensive states for roof damage claims due to frequent hailstorms, Illinois came in second last year.

Changes to Roof Coverage 

Many insurance companies no longer cover full roof replacement costs for older roofs (10-15 years). Instead, they cover the depreciated value or impose higher deductibles. Discounts may be offered for hail-resistant roofs, while non-compliant roofs may face surcharges.

Fraud: Another Factor Driving Up Costs

Fraudulent roof claims are contributing to rising premiums. Scammers, known as “storm chasers,” often go door-to-door, convincing homeowners to file inflated or fake claims. Insurers are fighting back with advanced technology like drones and AI to detect fraud, while states are passing laws to curb these schemes.

Fortified Roof Standards

In response to increasing weather damage, states like Florida, Texas, and Alabama are implementing stricter building codes. These laws require homeowners to fortify their roofs against severe weather, with incentives like premium discounts for compliance. Programs like Alabama’s Fortified Roof Standard offer more durable roof systems to reduce damage from storms.

In Summary

Roof age, storm damage and fraud are driving up insurance costs, leading to stricter guidelines and higher premiums. Homeowners in storm-prone areas should consider fortifying their roofs to reduce risks and lower premiums.

Concerned about your roof’s insurance coverage? Contact your Robertson Ryan Insurance Agent today to review your policy and explore options to protect your home.