The Challenges of Insuring Homes with Older Roofs
Posted on: July 17, 2015 by Aegis General
As most homeowners are aware, various factors contribute to the cost of an insurance policy. Earlier this year, we touched briefly on Specialty Homeowners Insurance, and how this coverage takes care of clients with more complex needs than typical homeowners.
A home’s age is a significant consideration and obstacle for standard homeowners insurance companies. Generally speaking, the older a house is the more likely it is to have serious defects caused by wear and tear. Over the years that can increase the structure’s exposure to loss. The challenge that homeowners face in the standard market is that oftentimes, their 10 to 20-year-old roof prevents them from obtaining coverage.
Standard homeowners insurance companies are increasingly limiting their roof coverage; either by refusing to write new policies for homes with older roofs, or by not renewing existing homeowners insurance policies on homes with roofs over a particular age. An option many homeowners insurance companies do offer is actual cash value for aging roof replacement. However, this could severely limit a homeowners’ ability to actually replace their roof should a natural disaster or other typically insured loss occur.
What is it that makes older roofs more of an insurance risk? These roofs may have been poorly constructed to begin with, given that recent years have seen increasingly stringent construction rules and regulations. Older roofs are also significantly more vulnerable to extreme weather events such as windstorms, hail, and heavy snow.
Insurance experts often recommend that when replacing a roof on a home, builders and homeowners pay attention to the home’s climate; hot and humid climates produce storm events and high ultraviolet exposure that progressively damage roof membranes, while cold climates make certain roofing materials brittle. Homeowners who don’t have the option to replace their aging roof, however, often find themselves in a lurch when it comes time to renew their policy.
Aegis General Insurance Agency offers a Specialty Homeowners product that focuses on property and asset protection for clients typically not able to obtain coverage through the standard insurance markets. As a full-service program administrator, we provide our agency partners with distribution, underwriting, and policy administration capabilities to enable complete insurance program management. For more information about our operation and other personal insurance coverage we provide, please contact us today at (866) 662-5752.