How Your Roof Impacts Insurance Premiums

Have you received a notice from your insurance company that your rates will increase, or worse, your coverage will be terminated, because of the state of your roof? Many home insurance companies deem a roof that’s 20+ years old “uninsurable,” but in addition, other factors such as the shape of your roof, materials used, and geographic location can impact your premiums. So, if you are questioning if replacing your roof will lower your home insurance premiums, the answer is most likely “yes.” Homeowners can realize a 5-35% reduction, with the national average hovering around 20%.

However, before you run out and start soliciting bids from roofing contractors, it’s a good idea to discuss your plans with your insurance agent. For starters, your agent will want to know if you are replacing your roof voluntarily or due to damage. If damage from weather events or neglect has ruined your roof, your insurance premiums may increase. They may also want to know what type of roofing materials you’re considering.

Other factors that could reduce your premiums would be the shape/style of the new roof. Gable roofs are more susceptible to wind damage and flat roofs are undesirable because water can pool on top and cause leaks and other problems. On the other hand, adding enhancements such as Secondary Water Resistance (SWR) could also lower your premiums. Your insurance agent can best advise you on what type of roof and roofing materials would be the best choices based on the design of your home and the climate you live in.

Boost Your Home’s Value

In addition to possibly lowering your home insurance premium, a new roof will give your family reassurance that they are protected from the elements, while potentially increasing the value of your home. To maintain these benefits, you will need to maintain your new roof. That means regular roof inspections, keeping the gutters clean, and staying on top of problems such as leaks before they spiral into larger, more expensive problems.

When working with a roofing contractor, homeowners need to remember that if they are working with their insurance company to pay for their roof replacement, the homeowner is responsible for the homeowner’s insurance deductible. This would apply in the case of roof replacement due to weather damage, fire, or other qualifying conditions, not voluntary roof replacement due to age. Never let a roofing contractor try to convince you that you aren’t responsible for your share of the cost.