Let’s make sure you’re roof is indeed insurable. I had a recent conversation with someone that was wanting to switch their insurance to me from another company because they were being cancelled due to the condition of the roof. Here in North Texas and especially Denton, Tarrant, Dallas, and Collin counties insurance companies are taking a beating on the roof claims as a result of the crazy hail we get almost every year about this time.
Back to the person getting cancelled. They purchased a home in Lewisville and did the routine home inspection. The home inspector didn’t specifically address the condition of the roof or the poor condition it was in so they bought the house not knowing that the insurance company is going to do their own inspection of the property after closing. Once the insurance company did their review of the property which usually happens about 30 days after closing, they determined that the roof was not insurable. This could have been avoided if the buyer reached out to a trustworthy roofing company to take a peek at it before they bought it. I strongly recommend having a roofer look at the roof of your home you’re putting under contract so that you don’t get into a pickle once you’ve closed on it.
Here are a few things to look for in a roofer:
- Don’t use one that is knocking door to door
- Ask your friends, family, insurance agent, realtor, or someone else you trust that deals with this type of business to give a recommendation
- Make sure the roofer is not asking for a large upfront payment before starting the work.
I spoke with a marketing representative for the 3rd largest insurance company in the U.S. and he share with me the losses that insurance companies are facing here in North Texas. Most companies like State Farm, Allstate, Travelers, Nationwide, Progressive to name a few are paying out approximately 20% more in claims for home insurance than they are taking in premiums. This is called a loss ratio of 120%.
This isn’t great news because what happens is that all of our insurance premiums have to go up and the insurance companies are going to do their best to become profitable by raising deductibles or limiting coverages for hail claims. Some companies are requiring a 2% wind/hail deductible or using cosmetic exclusions to reduce the amount they pay out. A cosmetic exclusion simply means that they will not replace your roof if it has a surface mark from hail, only if it causes enough damage to allow water to penetrate.
If you have more questions or need a recommendation for a roofer that is great, I know some that are top notch. Feel free to call David or Fabiana at the office: 940-268-5112.