A new era for homeowners’ insurance and your roof
Does your roof meet – or exceed – current insurance carrier standards?
Can your roof shoulder the burden of increasingly strong weather events?
Hail, hurricane-strength wind and downpours, tornadoes and more – once unthinkable in our region – now make weighty news headlines.
With pressure from significant storms, weather trends and policy payouts more across the nation more insurance companies are restricting homeowner’s insurance policies and coverage.
Roofing damage from floods, hail or wind impact or wildfires climate risk all but guarantees insurance coverage will become more costly. And it could become harder to buy – or hang onto – as more carriers stop writing policies altogether or tighten policy exclusions, a report posted last year on CNBC.com said.
“With natural disasters companies don’t want to insure those with older or vulnerable roofs,” said Melissa Eiseman, owner and principal of Eiseman Exterior Experts in New Britain.
Explosion of claims
In September 2024, Insurance Newsnet.com reported skyrocketing insurance claims nationwide and “a crisis for the insurance industry.”
Between 2021 and 2022, State Farm announced $1 billion increase in claims related to hail damage, the Insurance Newsnet website said.
In the report Stephen Poux, executive vice president of Risk Management with The Liberty Company Insurance Brokers said the escalating situation could become “the next new flood issue.”
New insurance era
Rain and hail account for about 48% of all local roofing claims, according to Rick Millham, Jr., president of Millham Companies, Inc., an insurance agent and broker in Doylestown.
“Every carrier inquires about the age of the roof when considering offering a quote. Roofs over 20 years old will significantly limit market options for Condominiums and Homeowners. Additionally, carriers frequently want to see that Associations responsible for the roof have a sound capital improvement plan, including an eventual replacement.” – Brendan Whelan, EVP of Brown and Brown Insurance Services.
Routine wear, tear and age deterioration can put your home’s roof to the test. Replacing a roof at the end of its lifecycle is not typically covered by homeowners’ insurance.
In fact, Millham said homeowners’ insurance is not intended to be a home maintenance funding program for repairs – including a roof past its prime.
A significant increase in roofing claims has sparked a new approach by many insurance carriers – dropping coverage.
Eiseman said drones and satellite images are now routinely – and randomly – used by insurance carriers to inspect roofing conditions for some policy holders.
If images show damage the carrier will send a letter putting the homeowner on notice about needed remediation and continued coverage requirements.
In some cases a repair or replacement ultimatum may be tied to whether or not the property owner’s coverage will drop or continue, Eiseman said.
“For a damaged roof they [some insurance carriers] will require a new roof to be put on the home with a deadline for the work to be completed – or they won’t renew the policy,” Millham said.
Steps for weather-related roofing failure
If you experience a severe weather event, call your insurance agent.
Discuss what happened and explore options under your policy. Take photographs after a storm and expect a visual inspection – either from a third-party hired by your insurance agent or from drone or satellite images ordered by them.
Other tips:
- Read your homeowners insurance policy and be sure to understand your coverage and any restrictions or exclusions.
- Take photographs of damage – if you are able and can take them safely. Even ground level photos can help identify loose or missing shingles or roofing granule residue on the ground or around downspouts.
- Contact your agent with questions as well as the process to begin a claim.
- Follow your agent’s instructions for submitting the claim and processing any funds you will receive
What’s next
As the industry grapples with new construction standards a shift toward FORTIFIED roofing materials – able to withstand damage from intense environmental pressures and the elements – is one solution.
FORTIFIED Roof is a voluntary roofing construction and replacement program offered through the Insurance Institute for Business & Home Safety (IBHS), a non-profit organization founded by the insurance sector.
IBHS coordinates developing roofing problems and hazards through research efforts and training programs.
Citation:
Rizzo, Melinda. A New Era for Homeowners Insurance and Your Roof. 18th November, 2024, unpublished manuscript.