Your roof is your home’s first line of defense against the elements. Protecting it is crucial, and understanding your homeowner’s insurance coverage is key. Recent data from Verisk’s “U.S. Roofing Realities Trend Report” highlights the increasing costs associated with roof repair and replacement, making it more important than ever to be informed. In 2024, these costs reached nearly $31 billion, a 30% increase since 2022. Magis Insurance is here to help you navigate these complexities and ensure you have the right coverage.

The Rising Costs of Roof Claims

The Verisk report reveals that roof-related issues accounted for over a quarter of all residential claims in 2024. Wind and hail are the primary culprits, driving more than half of all residential claim costs. Furthermore, roofs in poor condition are significantly more vulnerable, with 60% higher loss costs compared to those in good condition. Alarmingly, 38% of homes in the U.S. have roofs in moderate to poor condition and that is causing insurers to weigh roof age more in pricing and acceptability for home insurance.

Understanding Your Insurance Policy

It’s essential to understand your homeowner’s insurance policy, particularly regarding roof coverage. Here are a few key points:

• Replacement Cost Value (RCV) vs. Actual Cash Value (ACV) or a Roof Schedule: An RCV policy will cover the full cost of replacing your roof with a new one, minus your deductible. An ACV policy, however, will only pay the depreciated value of your roof, which may leave you with significant out-of-pocket expenses. More and more insurers are adding a roof schedule that pays a percentage of the cost based on the age of the roof that is damaged.
• Coverage Limits:Insurance policies have maximum payout limits for different types of claims. Not sure what your policy covers whether Magis handles it or not? We can review and discuss it!
• Deductibles: This is the amount you’ll need to pay before your insurance company covers the remaining costs. Choose a deductible that makes sense for the value of your home, the credit you receive and what things cost today and how your premium will change if you submit a small claim.

What Insurance Companies Look For

When assessing roof damage claims, insurance companies consider several factors:

• Cause of Damage: Policies typically cover damage from specific events like hail, windstorms, fire, and falling objects. Damage from general wear and tear or neglect is usually not covered.
• Extent of Damage: Insurance adjusters will evaluate the severity and scope of the damage to determine if repair or replacement is necessary.
• Age and Condition of the Roof: Older roofs may have limited or no coverage and, as mentioned, some insurers are paying only a percentage if an aged roof is damaged due to a covered loss

Tips for Homeowners

• Regular Inspections: Schedule regular roof inspections to identify and address minor issues before they become major problems.
• Maintain Records: Keep detailed records of all inspections, repairs, and maintenance.
• Prompt Reporting: Report any damage to your agent as soon as possible and discuss the circumstances, potential repair cost and process.
• Document Everything: Take photos and videos of any damage and protect your home from further damage to the degree possible. Keep track if you incur costs as they could be part of the claim.
• Work with Reputable Contractors: Choose a roofing contractor experienced in insurance claims, ideally recommended by a friend or neighbor. Beware of roofers knocking on your door unsolicited and never sign anything under pressure – scams abound and high pressure unsolicited visits are major red flags!!

Magis Insurance: Protecting Your Home

At Magis Insurance, we understand the complexities of property insurance and insurance claims. We’re committed to providing comprehensive coverage and expert guidance to protect your home. Contact us today to review your policy and ensure you have the right coverage for your needs.