One of the most confusing hurdles in today’s insurance market is roof coverage. Homeowners, buyers, and sellers often ask:
“How does everyone else in this neighborhood have insurance?”
“I’ve never had this issue before—why now?”
“One company declined coverage—does that mean the home is uninsurable?”
It’s a Market Shift, Not Just a Transaction Issue
Insurance rules have changed. Many homeowners grandfathered into better roof coverage may lose those benefits if they switch policies for a lower rate. While long-time policyholders may not notice, buyers and those shopping for new coverage will.
Key Considerations for Homeowners & Buyers
5+ year-old roofs = higher premiums, lower payouts
2% deductibles = $12K+ out-of-pocket for claims on a $600K home
Tree trimming is now required by insurers—don’t let it be a surprise
Why It’s Important Beyond Buying & Selling
If a recent hail event occurred, filing a claim before switching policies may be beneficial.
Moving to a new policy could mean losing Replacement Cost (RCV) coverage, leaving you with Actual Cash Value (ACV), which factors in depreciation.
If changing carriers, ensure roof coverage terms are equal or better—don’t focus solely on premium savings.
The Bottom Line
Roof-related insurance issues don’t just affect home sales—they should be evaluated before making coverage changes. Understanding these factors now can prevent costly surprises later.
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