Check Your Roof Before You Buy - Your Homeowners' Insurance Policy May Limit Coverage

Homeowners' insurance policies are becoming more restrictive with roof coverage to limit the number of claims. Several insurance carriers refuse to renew existing homeowner's insurance policies on a residence with a roof 20 years or older. The house did not pass the insurance company's inspection, and the carrier required replacing the roof before renewing the homeowner's insurance policy. As of 2020, most insurance companies require all shingle roof systems over seven years of age to be replaced with new ones. The reasoning behind this new scrutiny is that insurance companies believe there could be unseen roofing issues that could potentially deteriorate the deck, exposing them to higher risks for additional claims. 

If you have a roof that is 20 years or older, you may not be able to renew your homeowner's insurance, and if your older roof is damaged, you may only receive cash value for your roof replacement. 

Your roof is the critical shield for the rest of the structure of your house. It is the primary defense against damage from the elements. Because the average cost of a roof replacement can be $15,000 or more, it is one of the costliest parts of your home. 

To avoid potentially paying out a high claim, your home insurer may review any of your roof's features. These include what type of roofing materials were used, the age of your roof, and its current condition at the time you file an insurance claim.  

Your home insurance rate may depend on your roofing material's cost and durability. Your premium may be influenced by whether you have the proper type of roof to withstand weather events in your area and how much the materials cost to replace your damaged roof.  

TYPES OF ROOF DAMAGE CLAIMS 

Homeowner's insurance policies usually cover roof damage caused by fire, vandalism, falling objects (such as ice and tree branches).and "acts of God" (hailstorms, hurricanes, and tornadoes). Whether your insurance carrier pays for damage caused by wind, rain, or hail will be determined by your policy terms and the age of your roof.

A roof leak may be covered in your insurance policy. However, insurance companies put the responsibility on homeowners to prevent leaks and subsequent damage. They believe that it's up to the homeowner to take the necessary precautions to maintain the property. If your roof leaks and you didn't fix it properly, your insurance company might deny coverage.

These are general ideas, and your case may be different. It is good to check with your insurance company to understand what is covered and not covered before a claim is needed for specific details about your home's coverage.

The "sudden and accidental" factor is essential. If a leak in your roof is due to old age or poor maintenance, your claim will probably be denied. Insurance companies work on the belief that home maintenance is the responsibility of the homeowner. If a roof leak happened over time, it could have been avoided. Your home insurance provider will more than likely deny such a claim, and you could see a higher premium in the future as well due to the mark on your claim’s history as well as the condition of the roof.

You need to know what your homeowner's insurance covers on your roof before beginning the insurance claim process. The timeframe by which an insurance company allows you to file a claim can depend on the type of damage and the company's policy. It’s best to contact your insurance company immediately when you suspect damage.

The best way to keep your home insurance rates down is prevention. Reasonable steps towards taking care of your roof to keep your home insurance premium under control include:

·      Maintaining your roof (clean your gutters and keep off debris)

·      Choosing the proper roofing materials for your area (a licensed professional can advise you on the best material choices). 

·      Making sure your roof is installed correctly (choose only licensed contractors to work on your roof)

·      Keeping all documentation (photos, receipts, and other documentation)

·      Look for your best home insurance rates  

Homestead Title is a full-service title and escrow company. Since 1934, we have provided our customers with competent, thorough, and professional service. Before each closing, we search public records to clarify legal and financial risks for lenders, realtors, and other stakeholders in the real estate transaction process. Our energetic and capable team of real estate title professionals provide accurate investigations, rapid turnaround time, streamlined paperless delivery, and exceptional customer service. For more information, call us at (504) 581-6427 and let us provide you with a smooth and efficient real estate closing.