Will a New Roof Lower Your Homeowner’s Insurance?

If you are in the market for a new roof, we do not blame you for trying to cut costs where you can. Roof replacements—whether voluntary or involuntary—are expensive projects. Luckily, new roofs are among the various home improvement projects that can lower insurance.

If your roof qualifies for savings, you might see a reduction of 5% to 35% in your premium. But before you bank on an insurance discount for your new roof, know that several factors come into play, and discounts are not guaranteed. 

How Homeowner’s Insurance Rates Are Calculated

Each company uses its own proprietary method to calculate a homeowner’s insurance rate. But generally, insurance companies consider things like a home’s age, its location, the cost to rebuild, the roof’s condition, and your credit and claims history. Companies also consider other factors like any remodeling projects you have done, if you have a pool, and whether your home has a security system.

Why Your Roof Affects Insurance

Does a new roof affect insurance rates? The short answer is yes. How much it will affect your insurance rates depends on many factors, including the company you are insured with.

There is a reason why the phrase “a roof over your head” is so popular. We need all the different parts of our homes, but the roof is extremely important in protecting everything else from damage. The newer your roof is, the better it will keep your home protected from the elements, including severe weather.

Over time, as your roof nears the end of its lifespan, your home can suffer serious, costly damage. For example, a leaky roof can cause structural issues, mold growth, damaged flooring, and more. Additionally, an older roof is susceptible to issues like roof collapse in the case of excessive ice or snow buildup.

For these reasons, insurance companies consider the age and condition of your roof when determining your homeowner’s insurance rate. Older roofs are a liability, whereas new roofs provide security for your home. As you shop around for insurance, you may find some companies decline coverage if your roof is 20 years or older.

Roof Factors That Affect Your Insurance Premium

Now you may be wondering, “How much will a new roof lower my homeowner’s insurance?” A new roof does not automatically guarantee lower premiums. If getting an insurance discount for a new roof is your goal, you should first go over your plans with the insurance provider to see if a discount is possible. Roof type, the materials used, and whether your new shelter meets certain criteria will determine your new rate.  

Roof Shape

The shape of your roof will affect your homeowner’s insurance costs. For example, homeowners in areas prone to hurricanes or high winds have a better chance of securing a discount if they choose a hip-style roof. These have four sides and are typically the most costly to build. That said, insurance companies appreciate hip roofs with 30-degree angles because they fare best in hurricane weather.

Gable roofs look like an upside-down V, making them vulnerable to high winds. These roofs may cost more to insure.

Flat roofs are less common because water can pool on the flat surface and cause damage, which worries insurance companies. Flat roofs also have the shortest lifespan.

Roof Material

Some materials withstand environmental impact better than others, so the materials you choose can drastically change your insurance costs. Roofs with the lowest premiums are asphalt, slate, metal, and concrete. Wooden roofs cost about $150 more per year to insure than other types of roofs.

• Wood: Least fire resistant and might require added fire protection for coverage. In areas with high risk of wildfires, providers may refuse to insure a wooden roof.

• Asphalt shingles: Affordable and can be installed on top of an existing roof, but susceptible to decay, rot, and removal. 

• Slate: Low maintenance and resistant to high winds, fire, insects, and rot. Also heavy, susceptible to hail damage, and expensive. High replacement costs could increase insurance premiums.

• Metal: Very durable and resistant to fire, rot, and insects. Reflects sunlight but dents easily from hail. Can be costly to install.

• Concrete: Protects against hail, high winds, and heavy rainstorms.

Impact-Resistant Roof Discount

If inspectors certify your roof as “impact-resistant”, you may get a discount through your provider in some states. Eligible roofing materials must meet Underwriters Laboratories or the Insurance Institute for Business and Home Safety’s Class 1 through 4 standards. Note that shingles with Class 4 ratings—the highest in the business—are usually 30% to 50% heavier, so it is important to ensure your home can handle the extra weight.

Wind Mitigation Inspection

If your home is in a state susceptible to hurricanes—such as Florida, South Carolina, or North Carolina—you could save hundreds of dollars on your homeowner’s insurance by passing a wind mitigation inspection. An inspector will inspect the roof, but also consider windows and doors. To pass the test, your inspector will examine:

• Roof seals

• How the roof attaches to the home, specifically the nails and connectors

• Specific coding requirements

Secondary Water Resistance (SWR)

If your roof has Secondary Water Resistance (SWR) or a Sealed Roof Deck, you may qualify for bigger discounts. Qualifying SWRs are underlayments applied to the sheathing or foam adhesive, and do not include standard underlayments or hot-mopped felts.

Factors That Determine Your Insurance Rate

You might think that any significant home upgrade, including a new roof, will lower your insurance. But before asking, “Will a new roof lower my homeowners insurance?”, you need to know how insurers review claims—and your timing makes the biggest difference. 

Reason for Replacement

In general, you need to upgrade or replace your roof voluntarily to be eligible for lower insurance premiums. Most companies will award a discount as a thank you for improving your home’s quality and prioritizing safety. But if you need a new roof due to a disaster—or after a mandatory inspection—a roof replacement could actually increase your rates.

Consider how many claims you have made on your existing roof, as multiple insurance claims can hike premiums. If your roof replacement follows a partial repair after last year’s hurricane damage, be prepared for a possible increase, not a decrease.

Age

Newer roofs can warrant better insurance rates because they offer better protection for your home against extreme weather. New roofs also have lower risk of mold, leaks, or pest problems. For this reason, some companies provide a “roof age discount.” If, however, your roof is over 20 years old, many providers consider it a liability. You may have difficulty finding someone willing to insure a roof that is more likely to require replacement soon.

Should I Tell My Homeowner’s Insurance Provider About My New Roof?

Yes, you should let your provider know about a new roof. There is a chance that they may offer a discount on your premium, which could help offset the cost of your new roof. Also, if your roof happens to get damaged in the future, your insurance company will want to know how old your roof is.

After you give the company a call, mark down on a calendar all of the future maintenance tasks you are planning to do. Doing an annual roof inspection and cleaning it regularly will help your roof last as long as possible.

How to Get an Insurance Discount for a New Roof

Upon installing or upgrading your roof, contact your insurance provider to inform them. You will have to provide new photo documentation, which is an important step to get all potential discounts. Be patient, as the approval process could take several weeks. In addition, your insurance provider might:

• Request additional paperwork

• Ask for clarification on detailed aspects of your claim

• Inquire about your roof’s warranty

For the best chance at lower premiums, do not DIY this project. Hire a local certified and licensed roofer. The claim can be denied if you file a claim and cannot prove the work was done by a licensed professional. Of course, roofs with damages related to negligence will rarely meet discount criteria, so prioritize regular roof maintenance to keep it in the best shape possible, no matter how new your covering is.

Will Homeowner’s Insurance Pay For a New Roof?

If your roof is nearing the end of its lifespan, your homeowner’s insurance will not cover roof replacement costs. This is also true if you need to do any maintenance or upkeep for regular wear and tear. These are costs that the insurance company expects you to pay on your own; however, your insurance may pay for a new roof if yours was damaged accidentally or by nature-related events. Sometimes, your company will require that your roof is 10 years or newer for coverage to take effect.

Will Homeowner’s Insurance Cover Storm-Damaged Roofs?

The storm is over, but now you have to deal with a damaged roof. Knowing how to get insurance to pay for your roof replacement will be key to taking care of the problem quickly and efficiently. But first, you need to figure out if your insurance will cover storm damage. Check your policy and read all the fine print.

Generally, policies cover roof damage due to storms or damage from ice or snow buildup. If, however, your roof damage was due to flooding, high winds, or hail, your insurance may not cover you, depending on the coverage details.

Even if your roof damage is usually covered, you may not be eligible if your roof had prior damage that you did not fix, or if the damage is directly linked to poor maintenance.