Can a New Roof Lower Your Homeowners Insurance?
- By david Macmillan
- Published 05/9/2011
- Business
- Unrated
We all know just how brutal Mother Nature can be. We need only the recent example of the tsunami in Japan for proof that, when it comes to nature’s fury, we often have no control over the extent of the damages that may come.
But, here at home in the U.S., we also have day-to-day worries concerning mother nature, and for homeowners one of the biggest worries to contend with, particularly during the wet, winter months, is the damage Mother Nature can do to our roof. But that is not to say we can’t plan and prepare for how to better defend our homes and in doing so, get a break from our insurance companies for our efforts.
Nobody knows this better than the insurance companies who pay out the damage claims for roof repairs , hail storm damage included. Hail storms slamming the Texas panhandle, for example, have been reported to have resulted in 10,000 auto claims, 7,000 homeowner and commercial property claims ranging between $100–160 million insured losses, in one year alone!
On April 10th 2001, quite possibly the most costliest hailstorm in US history struck the I-70 corridor of eastern Kansas, across Missouri, into southwestern Illinois resulting in over $2 billion worth of damage.
Insurance companies can’t change the weather, but they can offer premium discounts for tougher, damage resistant types of roofing materials. The premium discounts can be as high as 45% and depends on the actual material.
The Institute for Business and Home Safety (IBHS) and Underwriters Laboratories (UL) established a testing standard (UL2218) that rates roofing materials on a class scale from 1 to 4 based on their resistance to various sizes of hail.
Metal roofing, experts suggest, will net
you the largest premium discount, but comes with a heavier price tag. Heavier duty Class 4 types of asphalt shingles and wood shake can qualify for a partial discount, as well. Except for qualifying metal roofs, premium reductions are not available for roofs that have been overlaid onto existing roofs.
In choosing a material, you will want to do the math for the cost of the roof and the total premium savings that you would incur while owning the home. If you are in your home for the long-term, then higher-grade metal roofing will net you the biggest savings overall. Shorter-term, then lower cost Class 4 asphalt shingles may be the better purchase.
Keep in mind, if this is a replacement roof due to storm damage, the insurance company will only be paying the claim on the original roof. The extra cost for impact resistant roofing will have to be born by the home owner.
Before you choose a roofing contractor and or the type of materials you want to use for a new roof, experts suggest that you talk to your insurance agent to learn about the exact discounts for the various different types of roofing materials available today. The materials that are eligible may differ from state to state, so you don’t want to go off and spend a bundle on something before you’ve fully educated yourself on the benefits of your purchase.
Depending on the insurance company, in some states, there are no discounts at all. Also, when applying the premium discount to metal roofs, you may be asked to add an endorsement that excludes coverage for appearance loss caused by hail.
The insurance company will also require a certification form for the new roof. Make sure that you choose a reputable roofing contractor in your area to do the installation. Also keep your eye out for roofing scams after a hail storm. Your agent may have a few contractor references that they have worked on claims with before, so it wouldn’t hurt to ask for them.
But, here at home in the U.S., we also have day-to-day worries concerning mother nature, and for homeowners one of the biggest worries to contend with, particularly during the wet, winter months, is the damage Mother Nature can do to our roof. But that is not to say we can’t plan and prepare for how to better defend our homes and in doing so, get a break from our insurance companies for our efforts.
Nobody knows this better than the insurance companies who pay out the damage claims for roof repairs , hail storm damage included. Hail storms slamming the Texas panhandle, for example, have been reported to have resulted in 10,000 auto claims, 7,000 homeowner and commercial property claims ranging between $100–160 million insured losses, in one year alone!
On April 10th 2001, quite possibly the most costliest hailstorm in US history struck the I-70 corridor of eastern Kansas, across Missouri, into southwestern Illinois resulting in over $2 billion worth of damage.
Insurance companies can’t change the weather, but they can offer premium discounts for tougher, damage resistant types of roofing materials. The premium discounts can be as high as 45% and depends on the actual material.
The Institute for Business and Home Safety (IBHS) and Underwriters Laboratories (UL) established a testing standard (UL2218) that rates roofing materials on a class scale from 1 to 4 based on their resistance to various sizes of hail.
Metal roofing, experts suggest, will net
In choosing a material, you will want to do the math for the cost of the roof and the total premium savings that you would incur while owning the home. If you are in your home for the long-term, then higher-grade metal roofing will net you the biggest savings overall. Shorter-term, then lower cost Class 4 asphalt shingles may be the better purchase.
Keep in mind, if this is a replacement roof due to storm damage, the insurance company will only be paying the claim on the original roof. The extra cost for impact resistant roofing will have to be born by the home owner.
Before you choose a roofing contractor and or the type of materials you want to use for a new roof, experts suggest that you talk to your insurance agent to learn about the exact discounts for the various different types of roofing materials available today. The materials that are eligible may differ from state to state, so you don’t want to go off and spend a bundle on something before you’ve fully educated yourself on the benefits of your purchase.
Depending on the insurance company, in some states, there are no discounts at all. Also, when applying the premium discount to metal roofs, you may be asked to add an endorsement that excludes coverage for appearance loss caused by hail.
The insurance company will also require a certification form for the new roof. Make sure that you choose a reputable roofing contractor in your area to do the installation. Also keep your eye out for roofing scams after a hail storm. Your agent may have a few contractor references that they have worked on claims with before, so it wouldn’t hurt to ask for them.