ARE YOUR HOME INSURANCE PREMIUMS SKY HIGH? CHOOSING THE RIGHT ROOF MAY BRING RELIEF

Roofing experts share 5 questions you should ask if you want lower premiums

Key Points:

• Affordable home insurance is getting harder to find but making the right home improvement decisions can save you money.

• Metal roofs are among the most durable and often most favored by insurance companies, qualifying them for potential discounts.

• Take an insurer's point of view when it comes to deciding what type of roof is right your home and your region by asking 5 essential questions.

Are you experiencing sticker shock when it comes to increases in home insurance costs? Or worse, are you having trouble getting home insurance at all?

In places like Florida and California where climate disasters have skyrocketed, some homeowners are finding it near impossible to get affordable coverage to protect their home https://www.cnbc.com/2024/07/02/florida-california-insurance-crisis-spreading-your-state-next.html.

But by making the right home improvement decisions, you may be able to lower the cost of your insurance premiums. This is particularly true when it comes to re-roofing decisions.

Choosing a metal roof can better protect your home in severe weather climates, leading some insurers to potentially offer home premium discounts for them

Using more durable materials like metal can reduce your homeowner’s insurance costs because it helps protect against damage and costly repairs. Many home insurance companies prefer quality metal roofs and will offer discounts to homeowners who install them.  Why?  Because most quality metal roofing systems are more resilient against high winds, offer a Class A rating (the highest possible) for wildfire, and provide a Class 4 rating for hail damage protection (according to UL Standard 2218 classification system).

Metal roofing also is stronger and lighter, making them better able to withstand heavy snow and ice buildup loads - severe winter conditions that could cause inferior or worn out roofs to collapse.

Depending on your region, insurance companies may go beyond just evaluating the age, condition and shape of your roof when determining costs. To understand how your roof plays a role in your home insurance premiums, take an insurer’s point of view. In general, here are five things insurers look for when it comes to evaluating how protective your roof is (hence, how it may help guard against costly damage and repairs):

1)        Is the roof made from quality, highly durable materials?

Metal roofs are more durable and oftentimes the most favored by insurance companies when they consider potential discounts. Slate and tile are also strong against fire, rotting and insects but they can crack and are heavy.

The least favorable choices include asphalt which can be short-lived and easily damaged by severe weather extremes. It also wears out faster. Wood roofs are considered the worst by insurance companies due to fire danger and the threat of displaced, rotten or worn out shingles which can cause major damage. In some areas, you may be required to apply a fire retardant to get coverage, or you may be denied coverage altogether. 

Especially in hurricane and hail regions where flying debris and severe impacts cause millions of dollars in rooftop damage every year, states like Florida and Texas use ratings for rebate programs such as UL Standard 2218 https://ibhs.org/wp-content/uploads/2019/06/ibhs-impact-resistance-test-protocol-for-asphalt-shingles.pdf classification. UL 2218 is a rating system that assesses the impact resistance of shingles. Underwriters Laboratories (UL) tests shingles by dropping steel balls of various sizes onto them from different heights to simulate hail strikes. The shingles are then graded on a scale of Class 1 to 4, with Class 4 being the highest rating and the most impact resistant. 

2)        What shape is the roofline?

You may not realize it, but the shape of your roof can affect its performance. For example, hip roofs have inclines on all sides, so to an insurance carrier, this means they can hold up against stronger winds without being blown off. Gable roofs are the most common in the U.S. and look like an upside-down V. These roofs can be more vulnerable to high winds, but they also shed water and debris easily. Flat roofs have no pitch or slope and typically aren’t favored by insurance companies because flat roofs pool water easily. Again, the type of material and installation methods chosen can help up the durability and protection of your roof, no matter what the shape.

3)        How was it installed?

Whether you’re having a new roof installed or have work done on your roof, hire a certified, licensed professional. If, for whatever reason, you need to file a claim, the insurance company could deny it if the roof was not handled by a professional. Experienced installers can help you navigate proper building codes and recommend ways to further increase the protection and longevity of your roof through methods such as choosing quality underlayment, using the right attachments and clips, and making sure your roof is weather-tight.

4)        How old is the roof?

Generally, home insurance premiums are higher for older roofs. However, material like metal can last up to three times longer than other types, with no compromises in performance.

That could impact the policy you end up choosing. Typically, your roof will be covered by either actual cash value or replacement cash value. If your home insurance policy is for actual cash value, then your insurance carrier will pay the actual cash value of your roof at the time of covered loss (ex: hurricane). The insurer calculates the actual cash value of your roof, minus the depreciation cost according to your roof’s age, and of course, minus your deductible. If your roof is older, the higher the depreciation value.

If your home insurance policy is for replacement cash value, then your insurance carrier will pay for the replacement cost value of your roof, which means the replacement cost value minus your deductible. Under replacement cost value, there is no deduction for depreciation which makes sense for more durable roofs like metal which should not be subject to standard depreciation evaluations given the fact they last far longer than other types.

5)        How well is the roof maintained?

To help extend the longevity of any roof, and reduce your risk of filing a claim, proper maintenance and upkeep are essential. Keep gutters clean, replace damaged or broken shingles, remove any debris (branches, leaves, moss, and mold), prune back any overhanging branches, have your roof routinely inspected every 2-3 years and check for pests.

To make sure you and your home are protected, carefully review your policy to know if you have the right coverage for your region, especially if your home is prone to threats like hurricanes and hailstorms. Document everything, including upgrades you’ve made to your roof and be sure to keep a paper trail. If you do decide to install a more reliable roof, remember to let your insurance agent know. You could qualify for even more cost savings.