Could Your Homeowner’s Insurance be Canceled Because You Have an Old Roof?

Yes, with the increased frequency of hail and windstorms, a lot has changed with homeowners’ roof damage coverage, so it may be time to be proactive and get a new roof – before it is too late.

For roofs older than 15 years, insurance companies believe there could be hidden issues within your roofing system, potentially exposing them to higher risks for additional claims, like flooding inside your home.

The trend in the insurance industry is to require an older roof, 15+ years to have an inspection to get a renewal. However, in some cases, even if a home is already insured, there have been incidents where insurance companies canceled the homeowner’s policy because of the roof’s age or maintenance issues.

High-Risk Insurance Can Cost Up to 50% More

Some insurers have the policy to refrain from writing new policies for homes with older roofs, so if you are canceled, the options are limited. You’ll probably have to get high-risk homeowners’ insurance which will cost up to 50% more than you were paying. And to make matters worse, in the event of a catastrophe, the insurance company may not pay to replace the roof fully but only reimburse for its value after all the depreciation. This is called ACV (Actual Cash-Depreciated-Value) rather than the RCV (Replacement Cost Value).

Premiums for ACV can look appealing but can be very costly in the long run. If you ever need a new roof because of damage due to high winds, for example, you will be paying the deductible plus depreciation costs. Depending on the age and price of your roof replacement, you could be thousands, if not tens of thousands of dollars out of pocket.

Is Roof Maintenance a Factor?

Check the insurance policy to determine if roof maintenance is a factor in a claim payout. Many insurance companies will only accept a claim if the roof has been adequately maintained even though an insurable event, such as a hailstorm, caused the roof damage. If you need roof maintenance, please contact us.

Run the Math on a New Roof vs. Insurance Costs

Suppose you come into a situation where you are pushed into a high-cost, low-coverage insurance situation. In that case, we recommend you run the math to determine the life expectancy of your roof based on its current condition and compare the insurance cost and the benefits coverage vs. the cost to replace the roof now. It may be a better option to get a new roof now.

Need help with a roof assessment, roof repairs or a free quote for a new roof? Contact us today.