You found the house. The inspection went great. You start thinking everything is smooth sailing to the closing table and then it happens. The insurance carrier won't cover the home, or the coverage is far weaker than you expected. Why? The roof is not insurable.
I'm seeing this more and more, and it's catching buyers and sellers off guard. Here's what's going on and how to prepare.
Why a good-looking roof can still be a problem
Insurance companies care about two things: the age of the roof and its condition. Many carriers start to scrutinize roofs around 15 years old, and some are now doing it at 10. Roofs that age can lead to:
A denial or non-renewal. Some carriers simply won't write or renew a policy on an older roof.
A switch to Actual Cash Value (ACV). Instead of paying to replace the roof, the policy pays only what the aging roof is "worth" today. After a storm, that can leave you thousands of dollars short.
That "30-year" label on the shingles is simply a manufacturer warranty. Insurers don't go by it. They go by when the roof was installed and what it looks like today. Here’s a couple of roof tips if you are currently looking to buy or sell.
If you're buying
Don't wait until the last minute to find out whether the home is insurable. Here's what I recommend:
Ask about the roof early. Sellers should be filling out property disclosures for you to review and one of those questions is the roof age. If you don't see it, ask if they can provide any information. Sometimes the sellers can't remember the exact date they installed a new roof and rather than report it wrong they just leave it blank.
Have it inspected. Make sure your home inspector pays close attention to the roof and its condition. To go a step further, you can even have a roofer take a look and give an estimated age and how much life is left on the shingles.
Get an insurance quote during your due diligence period. Your lender will require proof of coverage to close. Getting this done early in the process can give peace of mind instead of having things derailed last minute.
Use what you learn. Depending on the findings, you may be able to ask for repairs, a credit, or a price adjustment.
If you're selling
An insurance problem with your roof often shows up late in a contract and costs you the sale. Getting ahead of it puts you in control.
Gather your paperwork. Look for Install date, permits, invoices, warranty documents, and any repair history that you have.
Consider a pre-listing roof inspection. Nationally, inspections average roughly $250, and minor repairs can sometimes extend a roof's life and satisfy an insurer.
Weigh replacement against credits. Compare the cost of a new roof with the price reductions or credits you may end up giving. You may come out better having the roof replaced, especially if it's for a reason you can file under your current homeowners insurance.
Disclose accurately. An uninsurable roof that surfaces late in the process is one of the fastest ways to lose a buyer's trust.
Thinking about buying or selling?
If you're planning a move in Lancaster, Fort Mill, Rock Hill, Waxhaw, or anywhere in the Charlotte area, let's talk about your roof before it becomes a surprise. I can connect you with local independent insurance agents and roofing professionals so you know where you stand.
