Does a New Roof Lower Your Homeowners Insurance?

Homeowners insurance provides property owners with financial protection against damage to their homes. Factors influencing premiums include location, age, and construction materials. Replacing a roof can also affect premiums. Understanding how this upgrade alters insurance expenses is beneficial.

Understanding How Roofs Impact Insurance Premiums

A roof’s condition, age, and type directly influence how insurers assess risk. Older roofs, especially those over 15-20 years old, pose a higher risk due to wear, leaks, and structural issues. This risk can lead to higher premiums, with increases of 5-15% for roofs 15 years old and 25-50% for those over 20. Some insurers may limit or deny full coverage for roofs over 25 years old.

A roof in poor condition increases the likelihood of claims, leading to higher rates or coverage limitations. Conversely, a new, well-maintained roof reduces these risks. Insurers may require inspections for older roofs before issuing or renewing policies. Some might only offer Actual Cash Value (ACV) coverage, which accounts for depreciation, rather than full replacement cost. Roof material also plays a role in risk assessment, influencing lifespan and durability.

Specific Roof Features That Qualify for Discounts

Installing a new roof can reduce homeowners insurance premiums, often by 5-35%, with an average reduction of around 20%. Newer roofs, typically under ten years old, are viewed as lower risk, resulting in more favorable premiums.

Specific materials and construction techniques can enhance these savings. Impact-resistant shingles (Class 3 or 4) withstand severe weather like hail and high winds, leading to fewer claims and potential discounts of 5-30%. Metal roofing also qualifies for discounts, sometimes reducing premiums by 10-35%, due to its durability, fire resistance, and energy efficiency.

Fire-resistant roofing materials (Class A rating) can also lead to discounts, especially in wildfire-prone areas, with savings of 5-20%. Additionally, incorporating wind mitigation features, such as reinforced roof deck attachments, strong roof-to-wall connections, specific nailing patterns, or a hip roof shape, can result in substantial discounts. These features, adhering to current building codes and installed professionally, reduce high wind damage risk and can significantly lower the windstorm portion of a policy.

Process for Updating Your Insurance Policy

Preparatory Phase

Before contacting your insurance provider about a new roof, gathering all necessary documentation is important. This includes the contractor’s invoice or contract, which should clearly state the completion date of the roof installation and the specific type of materials used. If the materials have special certifications, such as a Class 4 impact resistance rating, obtaining proof of these certifications is also necessary.

It is also advisable to collect any relevant permits or inspection reports, especially if wind mitigation features were installed or if a general roof inspection was performed. Taking clear, date-stamped photographs of the new roof, and potentially “before” photos if the previous roof had damage, can provide visual evidence to support your update. Reviewing your current policy to understand existing coverage limits and specific requirements for home improvements can also be helpful.

Procedural Phase

Once the documentation is prepared, contact your insurance provider through their preferred method, such as a phone call to your agent, an online portal submission, or an email. Clearly explain that a new roof has been installed and express your interest in reviewing your policy for potential premium adjustments or discounts.

Submit all the gathered documentation to your insurer, as this information is necessary for them to assess the changes and re-evaluate your policy. After notification, you can expect the insurer to review your policy and the provided documents, which may lead to potential premium adjustments. The insurance company will then issue new policy documents reflecting any changes, along with the effective date of these updates.