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I have noticed in online community groups where I live that a growing and unexpected number of people (largely working and lower-middle class homeowners) are complaining of receiving homeowners insurance cancellation notices over roofs —or rather, threats to cancel if proof of new shingles aren't provided. Most of these folks have said their roof is ~15-years-old, though the number of folks reporting receiving the same letters despite having roofs <=10-years-old are also increasing, albeit more slowly. Quite a few have posted pictures asking what the heck is going on, and their roofs appear to range from clearly not in disrepair to outright pristine. I did ask an insurance franchisee client of mine about this last week. He advised that insurance companies have been sending reps out to take pictures of roofs and surrounding property and suggested that:
People should keep their lawns mowed, the exterior of their house washed —as well as free of unnecessary clutter and debris— because reps are often instructed not to bother with well-kept homes and that, adjusters and judges are far less predisposed to rule in favor of homeowners on roof claims where such eyesores are present when claims are contested.
Hire a company to come out to wash and, if possible, weather-coat (these usually come with 5-year guarantees) existing roofs to guard against excessive shingle deterioration or perception thereof. This can be done for $200-$400 in most cases for homes ranging in size between 1,100 - 2,100sqft, and is well worth the money considering the alternative is being forced to spend $5,500 - $10,000 for a shingle redo just to maintain HOI for folks on a tight budget.
The other side of the coin is of course that there are no shortage of roofing/contractor services that have been going around convincing homeowners to assist them in committing acts of insurance fraud in order to gin up business. I've even seen streets peppered with lawn signs that read something along the line of, "New roof for only $500-$1,000?! Ask Us How Today!" where virtually all of the homes suspiciously had brand-new roofs put on. This is criminal behavior —knowingly or not to the homeowner— that causes insurance rates to increase for everybody and causes insurance companies to overreact in the preemptive fashion described above.
About 8 years ago, I replaced my roof, a complete tear- off. Then came a bad hail storm. The “ storm chasers” descended on the community to assess damage and assist owners making claims. No shortage of these scammers assessed damage on my roof and did so from the ground. I had no damage and told them all to f- off.
Anyway, there were thousands of claims from those in the line of the storm. Most of my neighbors had their roofs replaced for the price of their deductible. The thing about storm chasers is that they tend to be from out of state and pay local roofers to apend to in state licenses. Not all roofers engage in this because they have no recourse with the storm chasers, if workmanship or material is shoddy.
No surprise that premiums increased substantially over the next two years because of claims made, regardless of individual claims made. All insurance pools risks. Future roof claims are now paid on a depreciated basis because older roofs are more susceptible to wind/ hail claims, thus claims.
From an actuary standpoint, a roof older than 15 years is more likely to incur wind/ hail damage, the most common claim.
Insurance is regulated by the state. No two states have the same regulations.
Yes and I think they need to be heavily regulated to protect the consumer. The states should crack down on scams like the roofing ones in Florida. Just set up stings and catch the contractor and complicit adjustors. Though with so much corruption in government the states are probably in on it too. In the end we all pay but again, it's the weakest who pay the biggest price and get pushed out.
It is unreasonable if they are allowed to cancel a policy over a 15 year old roof even if it is more likely to be damaged, but a good storm can do in any roof, and a lot has to do with proper installation of the roof. I have an older roof which was installed by a top notch company, never one leak ever and held up through some nasty storms. I'm afraid there are going to be problems when I replace it, as I hear is quite common.
About 8 years ago, I replaced my roof, a complete tear- off. Then came a bad hail storm. The “ storm chasers” descended on the community to assess damage and assist owners making claims. No shortage of these scammers assessed damage on my roof and did so from the ground. I had no damage and told them all to f- off.
Anyway, there were thousands of claims from those in the line of the storm. Most of my neighbors had their roofs replaced for the price of their deductible. The thing about storm chasers is that they tend to be from out of state and pay local roofers to apend to in state licenses. Not all roofers engage in this because they have no recourse with the storm chasers, if workmanship or material is shoddy.
No surprise that premiums increased substantially over the next two years because of claims made, regardless of individual claims made. All insurance pools risks. Future roof claims are now paid on a depreciated basis because older roofs are more susceptible to wind/ hail claims, thus claims.
I had storm damage to my previous home. They took a ton of photos of the damage, including the roof, which were scrutinized. Something is WRONG if insurance doesn't confirm the damage through photos from on the roof and just pays. Why don't their adjusters have to prove damage before they pay out.
State needs to crack down.
2. The conspiracy that somehow insurers are part of a cabal to force old people from their homes is hogwash.
Not ins cos - the market. Lady, sell now. $300k. Her Ins $1000 yr. and they need a new roof now or will drop you.
Just let’s say ok she sells - New buyer pays $380. Ins now $1100 a year. Win win for Corps.
In Wall Street all tied in together. All those Invitation Homes buying all cash here in Fl and have to pay ins too. Jack up rents. They making a killing and forcing poverty
I had storm damage to my previous home. They took a ton of photos of the damage, including the roof, which were scrutinized. Something is WRONG if insurance doesn't confirm the damage through photos from on the roof and just pays. Why don't their adjusters have to prove damage before they pay out.
State needs to crack down.
It’s a business of making money - making sure you get as little of it as possible.
Yes and I think they need to be heavily regulated to protect the consumer. The states should crack down on scams like the roofing ones in Florida. Just set up stings and catch the contractor and complicit adjustors. Though with so much corruption in government the states are probably in on it too. In the end we all pay but again, it's the weakest who pay the biggest price and get pushed out.
It is unreasonable if they are allowed to cancel a policy over a 15 year old roof even if it is more likely to be damaged, but a good storm can do in any roof, and a lot has to do with proper installation of the roof. I have an older roof which was installed by a top notch company, never one leak ever and held up through some nasty storms. I'm afraid there are going to be problems when I replace it, as I hear is quite common.
Watched some of the storm chaser crews knock out 2 roofs a day on homes that range from 2600-4600 sq ft, plus garage. All work was permitted and inspected. Municipalities take zero responsibility for inspections that don’t detect shoddy workmanship/ material.
And what happens when the instate roofing licensure is no longer in business to honor the guarantee?
It boggles the mind to see how many chose to work with storm chasers instead of more local roofers with solid reputations.
I don’t track what you mean about problems when you replace your existing roof.
I had storm damage to my previous home. They took a ton of photos of the damage, including the roof, which were scrutinized. Something is WRONG if insurance doesn't confirm the damage through photos from on the roof and just pays. Why don't their adjusters have to prove damage before they pay out.
State needs to crack down.
Storm chasers take photos.
When an area is hit by a bad storm, it may be more efficient for an insurer to pay than inspect every roof. Given the number of storm chasers who claimed to observe hail damage from the ground, I figure they would substitute photos if I had been willing to play the game.
It was fascinating to learn both the insurers and storm chasers knew the exact pattern of the storm. The storm chasers ignored properties inches outside the storm.
14 years ago, after an especially heavy rain, there were thousands of homes, including my own, in the area that experienced serious basement flooding. Sump pumps and back- ups could not keep up with the water.
All that was required to make a claim was a picture. My state caps basement flood claims at $10,000, regardless if the basement is finished or unfinished or contents. No adjusters. Insurers cut checks for $10,000, less deductible within hours.
On the other hand, major auto insurers typically set up pop- up claim centers in Home Depot and Lowe’s lots, after a major storm. You drive your car to the claim center. Damage is assessed and a check written on the spot. I saw a few cars that looked as though it had been riddled with thousands of bullets, the hail damage was so bad. Likely, some of these were deemed total losses. Imagine some payouts were $ tens of thousands, thus it made economic sense to inspect and adjust.
Not ins cos - the market. Lady, sell now. $300k. Her Ins $1000 yr. and they need a new roof now or will drop you.
Just let’s say ok she sells - New buyer pays $380. Ins now $1100 a year. Win win for Corps.
In Wall Street all tied in together. All those Invitation Homes buying all cash here in Fl and have to pay ins too. Jack up rents. They making a killing and forcing poverty
Vague word salad of conspiracy.
If you can't wrap your brain around the state government for political reasons making a type of insurance so unprofitable that the companies don't want to sell policies then I cannot help you.
The insurers are not like a car dealer or a supermarket. They don't get to set their prices, their underwriting practices etc. without full govt. pre-approval.
About 8 years ago, I replaced my roof, a complete tear- off. Then came a bad hail storm. The “ storm chasers” descended on the community to assess damage and assist owners making claims. No shortage of these scammers assessed damage on my roof and did so from the ground. I had no damage and told them all to f- off.
Anyway, there were thousands of claims from those in the line of the storm. Most of my neighbors had their roofs replaced for the price of their deductible. The thing about storm chasers is that they tend to be from out of state and pay local roofers to apend to in state licenses. Not all roofers engage in this because they have no recourse with the storm chasers, if workmanship or material is shoddy.
No surprise that premiums increased substantially over the next two years because of claims made, regardless of individual claims made. All insurance pools risks. Future roof claims are now paid on a depreciated basis because older roofs are more susceptible to wind/ hail claims, thus claims.
The issue is cost of inspection and verification.
Insurance of that type is incredibly competitive and price sensitive, the profit margins are teeny-tiny (and publically available).
If a hail storm pummels a subdivision and they spot some homes with legitimate claims they may just green-light the whole subdivision rather than verify every claim even though hail is a fickle creature and can leave one side of a street battered and the other side much less afffected.
It's a difficult discussion to have because most people don't understand how insurance is regulated in the US and thus each state makes it's own rules and laws. That's why you get states like Michigan with crazy high auto insurance rates and thus tons of uninsured drivers and across the border in Indiana it's a whole other story.
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