Understanding new underwriting guidelines for roofs

When it comes to securing homeowners insurance, one of the critical aspects underwriters consider is the condition of the roof. For residents in Ohio and Indiana, understanding the specific underwriting guidelines regarding roofs can help ensure that their properties remain insurable and protected. Over the past year, we have seen significant changes in underwriting guidelines pertaining to roofs specifically at new business.

Insurance underwriters focus on the age, material, and condition of the roof. Generally, roofs that are over 20 years old may require a more detailed inspection to assess their reliability and durability. Many of our carriers are starting to put age guidelines into force at new business to determine eligibility for a new policy. For example, two of our carriers will not accept a new business policy for a homeowner with a roof over 10 year old. As you can imagine, this drastically limits the business that we can place with this carrier.

Many carriers are also starting to consider moving older roofs from replacement cost to actual cash value at a certain roof age. Again, there has not been an industry standard, but it is important for clients to understand the underwriting requirement at the time of purchasing a policy.

Underwriters prefer roofs made of materials such as asphalt shingles, metal, or tile, which are known for their longevity and resistance to weather-related damage. We often have clients ask us if one material is better than another when considering a roof replacement. There is no clear cut answer from an insurance perspective. While metal roofs may allow the insured to by-pass age requirements down the road, they often have a higher material cost and therefore result in a higher premium. Carriers are also starting to put cosmetic damage exclusions in place for metal roofs which can effect claims situations in the future.

Several insurance companies are embracing satellite technology when it comes to roofs. Utilizing satellite imagery, they are able to review the condition of the roof and then utilizing a program, they can generate a roof score. Overall, this is a good way to review roofs because it embraces the actual condition of the roof instead of just an age. However, there are still some flaws such as imagery shadows, rain on roofs that look like degradation, etc.

Finally, one of the biggest changes we are seeing that can impact roofs is a change in the wind/hail deductible minimums on homeowners policies. Most of our carriers are changing their minimum wind/hail deductible to $2500. Some have implemented tiered minimum deductibles based on the coverage amount for the home. A select few carriers have begun utilizing deductibles that are a percentage of the coverage A limit. Again, when looking to get a new business quote, clients need to be sure to understand their deductibles as they can greatly impact a claims experience.

The complexity of insurance has greatly increased over the past year. As agents, we work daily to make sure that we are staying abreast of the changes that are happening with each carrier. We diligently work to ensure that we are keeping your insurance with the best coverage available.

As an insured, what needs to be done:

1. Keep any and all documentation related to updates of your home, but especially any updates to roof, heating and plumbing.

2. Be sure to ask your agent questions about your coverages before switching carriers. For example, is the roof scheduled for replacement cost or actual cash value coverage?

3. Discuss deductible options with your agent. There have been times when increasing deductibles makes a lot of sense and other times when it doesn't make sense at all.

4. Continue to do regular maintenance to your roof such as painting metal roofs, keeping trees and limbs clear of roof lines, clearing roofs of moss, etc.

5. Keep communication lines open and patience at the front of this process. As with all changes, it will take time before all of the kinks are worked out of the new rules. Continue to communicate with your agent and ask questions on anything that seems confusing.