Age Of Roof And Insurance Discounts
In the world of homeowner upkeep and repairs, nothing lasts forever. The cost of replacing your roof entirely may seem extreme at first glance, but almost no aspect of your homes structure is more exposed to damage from the elements or more important in keeping you safe and protected.
On average, heres how long you can expect your roof to last barring any unforeseen natural disasters:
- Asphalt shingles: 25 to 30 years.
- Concrete tiles: 35 to 50 years.
- Metal roofs: 30 to 45 years.
- Rubber roof: 30 to 40 years.
Of course, while some roofing materials may have a longer lifespan, they may also cost more money to replace or repair if damaged.
Your insurance provider may offer discounts based on the age of your roof and the upgrades youve applied to it .
The discounts you qualify for will vary depending on where you live and your premium details, but typical policies offer between 5 percent and 35 percent for roof upgrades.
Ways To Dramatically Lower Your Home Insurance Costs
- About two-thirds of American homes are underinsured, by an average of more than 20%, according to Nationwide.
- Knowing what type of coverage you need is critical and should include dwelling, personal property and loss-of-use coverage.
- To cut costs, you can hike your deductible, get discounts on home upgrades and shop around every few years.
The cost of homeowners insurance is one of those unavoidable expenses that comes along with owning a house.
How much you’ll pay for insurance varies depending on your location and the age of your home, but the average annual homeowners insurance premium is $1,200. That can feel like a big expense, but knowing you’ll be reimbursed if something happens to your most valuable investment can be priceless. Plus, your mortgage company may require that you keep a certain level of homeowners insurance.
The first step is knowing what type of coverage you need. Standard home insurance typically includes four parts:
Dwelling coverage: This covers damage to the house itself.
You should have enough insurance to cover the cost of rebuilding your home, from the foundation up, in case of a fire or other disaster that make it impossible to salvage. That may be more coverage than you think. About two-thirds of American homes are underinsured, by an average of more than 20%, according to Nationwide.
Other structures: This part of the policy covers external structures on your property, such as fences, detached garages and sheds.
Adding Home Security Systems Doesn’t Significantly Lower Home Insurance Rates
Some home insurers advertise discounts to homeowners who report having monitoring systems for fires, leaks and burglary. However, our data suggest that the actual savings on your insurance bill may be close to zero, especially when compared to the amount you pay for the devices.
Home security discounts by provider
| Insurer |
|---|
| 2% |
Based on annual estimates from insurers’ web-based quote forms
When we obtained quotes from five major insurers, we found that two of them Allstate and Farmers did not inquire about home security at all within the online quote form. Among the rest, centrally monitored fire alarms led to discounts of 1% to 5% while adding a local burglar alarm reduced rates by no more than 2%.
Applied to the typical amount that homeowners spend on insurance, the variations we found come out to $14 to $72 saved per year. In comparison, the cost of installing such alarm systems and subscribing to the services that power them can cost thousands on an annual basis.
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Dont Forget The Most Important Step
Most homeowners dont update their house insurance policy or even look at it until they incur a loss or move. Insurance companies, on the other hand, update their rates at the time of renewal every year. If you dont mention any home upgrades, the only direction your premiums might go is up.
Even if your home renovation is going to increase your insurance rate, its important to have a conversation with your provider. Otherwise, your new home office or roof wont be sufficiently protected. If you make the call before construction begins, you could be covered if something happens.
Updating your policy may be easier than you think. The most you may need to do is provide a receipt or take photographs for your underwriter.
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How To Save On Home Insurance No Matter The Roof
No matter the material used, newer roofs will almost always translate into greater discounts or savings when it comes to home insurance.
But before embarking on a renovation, its best to discuss it with your insurance representative to see which materials and styles of roofs will garner the most savings for you in the long run.
Conducting regular check-ins of the condition and age of the roof is important, too. Being proactive can help mitigate costs and avoid insurance rate increases down the road. Insurance providers may also want to look at your maintenance plans. If you have been neglecting maintenance, they may refuse coverage altogether. In their minds, you are not keeping up your end of the bargain, so to speak, to prevent damages and future claims.
Most importantly, dont take the first rate youre offered. Go online and compare rates from various home insurance providers. Roofs can go a long way in bringing down your premium. But your own due diligence is still one of the best ways to put money back in your pocket.
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What Is A Roof Inspection
A roof inspection is a report that evaluates the current condition of your roof. The inspector will tell if there are any missing or damaged shingles, leaks, clogged rain gutters, cracks, or other warning signs. Its different from a home inspection because home inspectors do not typically climb on the roof to review it thoroughly. A roof inspection will not inform you of the lifespan of your roof, only the repairs needed.
If you own an older home, a roof inspection is often required by the insurance company before they issue your insurance. Roof inspections are also commonly requested when youre selling your home, as buyers want to make sure that the house is safe. Some buyers, on the other hand, may want to pay for their own inspector to evaluate your roof.
What a roof inspector will look for:
- Curled, damaged, or missing shingles or tiles
- Vegetation on the roof
- Rust or signs of roof flashing
- Damaged or missing flashpoints
- Water stains on the ceiling or under the roof
- Damaged or clogged gutters, drains, skylights, chimneys, and roof valleys
Add A Security System
If you install protective features like deadbolts, fire alarms, or a fully monitored security system, you can save a good amount on homeowners insurance premiums.
The size of your discount is based on the quality and effectiveness of the protective device. For example, a local burglar or fire alarm wonât net you as large of a discount as a central station device that alerts your police or fire departments directly.
Ready to shop home insurance?
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Ways To Lower Your Homeowners Insurance Premiums
The information on this website is general in nature and is for informational purposes only. Any description of coverage is necessarily simplified. This website does not make any representations that coverage does or does not exist for any claim or loss under any policy. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any applicable insurance policy. Consult the actual policy or your agent for details regarding terms, conditions, coverage, exclusions, products, services and programs that may be available to you. Your eligibility for particular products and services is subject to individual eligibility and the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. Not all policies, coverages and features are available in all states.
I Need A New Roof Now What
A new roof is a significant investment. The average cost of replacing a roof is as much as $11,420. Start by searching for a quality, reputable roofing company. Referrals from friends or family can be helpful, but it is always a good idea to confirm that the company is licensed, bonded and insured.
Besides choosing the right company, the type of material you choose can make a big difference in how long the roof will last. As mentioned, asphalt shingle roofs have an average life span of 20 years. Modernize.com claims there are 18 types of roofing shingles available. Depending on the area you live in, you may choose:
| Shingle material |
|---|
| 30 years |
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Are There Insurance Coverage Limitations On My Roof
Home insurance policies can include coverage limitations for roofs.
Scott deLuise, president of Matrix Business Consulting in Broomfield, CO, suggests that homeowners read the existing or proposed policy carefully to look for that information.
“Coverage scope and exclusions are a big deal. Ask another insurance company for a policy bid at renewal if it contains a wood shake endorsement or an exclusion for roofs over 20 years old,” says deLuise.
He also suggests getting a qualify roofer to inspect the roof and provide a written report, so you know the condition before theres damage.
“That way, if wind or hail strike your house, you can show the insurance company that there was no pre-existing damage. You can also request a cost estimate for replacing the roof so that you can decide if the cost of a new roof outweighs the risk of being denied home insurance coverage, deLuise says.
deLuise says many insurers on the West Coast are adding new endorsements at renewal for the area’s popular wooden shingle roofs. A wood shake or shingle endorsement is a written document attached to an insurance policy that excludes or restricts coverage of wooden shingle or shake roofs.
deLuise has also seen many companies limit appraisal for wind and hail roof damage during the claims process.
If the policyholder demands an appraisal, some insurance companies try to limit the appraisals scope to damages that they’ve agreed to instead of all of the damage that the insured might find.
What Roof Factors Affect My Home Insurance
When calculating your homeowners insurance premium, your provider will look at certain details of your roof. These include:
- Age: As a roof gets older, your annual premium will probably increase. With the priority your home insurer will put on your roof, its risk level will increase with passing years. If your roof is too old in the eyes of your insurer, you could see your home insurance policy not renewed or even canceled.
- Condition: How well-maintained your roof is will affect your premium much like age will. If the roof’s materials are cracked, their performance comes into question. This can lead to a higher annual rate.
- Location: If you live in an area that has a history of harsh weather, it may affect your coverage and rates. For example, if your area has extreme snow, you’ll probably see a higher premium.
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Upgrading Your Exterior May Reduce Potential Damage But Pricier Materials Raise Replacement Costs
Aside from boosting curb appeal, upgrading the material of your home’s exterior can reduce your risk of damage from leaks and storm debris. However, the higher cost of stronger materials means that you may need a higher and more expensive dwelling coverage limit in your insurance policy.
| Cost per 100 sq ft | Annual premium |
|---|---|
| +$120 |
Insurance cost based on quotes for a $350,000 home built in 2004
The most popular exterior construction for single-family homes in the United States is vinyl siding, which consists of vinyl strips with interlocking edges.
The insurance implications of exterior improvements turned out to be twofold. Choosing a more durable, low-maintenance material means that insurers could see your home as having lower risk of a claim for dwelling damage. For example, replacing vinyl siding with more durable cement fiber siding slightly reduced our premium.
However, insurers may also require you to get a higher coverage limit to account for the higher cost of replacing that material if it’s damaged. The cost of coverage went up when we substituted wood or brick as the exterior material both materials cost more than vinyl and raised the dwelling coverage required.
Dramatic Effect On Low
During a March 17 hearing by the House Insurance and Banking Subcommittee, Rep. Bob Rommel, a Republican from Naples, announced he decided after meeting with stakeholders to remove the controversial proposal from an insurance reform bill he sponsored. Rommel did not identify the stakeholders, but contractors and plaintiffs attorneys have been outspoken in their opposition to the measure in legislative committee hearings so far this year. Rommel did not respond to requests to discuss his reasons for removing the proposal from his bill.
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Democrats in the House and Senate have also voiced opposition to the proposed roof coverage rollback, saying low-income residents in their districts would be devastated by a sudden requirement to come up with thousands of dollars for a new roof.
Sen. Audrey Gibson, who represents part of Duval County, noted in a Senate Banking and Insurance Committee hearing on March 18 that millions of homeowners in Florida have roofs more than 10 years old. The change would have a dramatic effect on older homeowners with roofs that are hanging by a thread that they cannot afford to replace, she said.
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Special Considerations For Roof Coverage
If a dramatic event causes dramatic damagethe roof comes crashing down, has a major hole, or is torn off entirelycoverage is likely. More problematic are instances when the damage is less dramatic, even if an act of nature caused it. Let’s say a violent thunderstorm nicks a bunch of your roof’s shingles. The insurance company may classify that as cosmetic damage, and not cover it. Or let’s say that, after the aforementioned storm, you notice your roof has become leaky. Even though the rains triggered it, the insurance company might claim that’s a general wear-and-tear problemreflecting your roof’s gradual deteriorationwhich is never covered.
Ironically, any water damage caused by the leaking roof to your walls, floors, or furniture probably would be covered under the all-perils section of your policy. However, the roof repair itself would not be.
What Is The Best Roof Design For Hurricanes
The best roof shape to get the cheapest home insurance rates is a hip roof because they have fewer sharp corners and lower-incline slopes. Because of these features, a house with a hip roof will generally perform better in a windstorm, especially in a High-Velocity Wind Zone like southern Florida. In fact, a hip roof can reduce your homeowners insurance premiums by close to 32%.
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Mandatory Vs Voluntary Roof Replacement
If you decide its time for a full roof replacement, the insurer will likely lower your rates. This is because you are taking the initiative to improve the quality of your house and protect your family. However, if the insurance company schedules a roof inspection and, as a result, enforces a roof replacement, your rates will likely stay the same or go up.
Talk To Your Insurance Agent Every Year
Before you start looking at ways to cut your insurance costs, it’s important to understand what your current policy covers. Even though insurers have tried to make their contracts easier to digest, those thick renewal documents can still be confusing. Start with the declarations page, which is essentially the summary of your coverage, says Lynne McChristian, a non-resident scholar with the Insurance Information Institute. Then take a look at the exclusions page to see what your policy specifically doesn’t cover.”You can’t just blindly trust that your insurer has sold you the right policy,’ says Amy Bach, executive director of United Policyholders, a nonprofit group in San Francisco that help consumers with insurance issues.
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Home Improvements That May Not Save You Money On Home Insurance
Bear in mind that not every home improvement that was made during your latest remodeling project will result in homeowners insurance savings. In fact, certain renovations like adding a room onto your home, remodeling your kitchen or bathroom, and finishing your basement will all increase your homeâs replacement cost. A higher replacement cost will likely result in higher policy premiums, but you should still notify your insurer of any renovations or additions to ensure your home is fully covered.
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How The Shape Of Your Roof Affects Your Home Insurance Premium
After each hurricane, the State of Florida reviews the damage and updates their building standards to prevent further damage in the future. Florida building codes require houses to be built using designs and materials that should withstand minimum 120 mph winds, however as a rule-of-thumb, the newer the house is, the higher wind speed its designed to withstand. Most current construction standards are designed to withstand wind speeds of about 175 mph.
In the above picture, dont think of red areas as bad and blue areas as good. The colors are there to help you understand how air will flow. Its the same as fluid dynamics: high pressure will push As air flows over and around your house, areas of high pressure push against the structure while areas of low pressure create a vacuum and pull against it. Any geometry of your house that causes friction against the wind will increase the pressure against your house.
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