Will a New Roof Reduce Your Insurance Premiums?

published on 06 October 2022
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How a New Roof Can Lower Insurance Premiums and Other Tips to Lower Homeowners Insurance

No one wants to pay higher insurance premiums than they have to. Whether it comes to your car, home, or life insurance, we are all looking for the highest quality insurance at the lowest possible price. It’s not that we are cheap either, it’s just that the money you save on homeowner’s insurance might just be enough to upgrade your deck or afford that premium fire pit ring. Let’s discuss how a new roof might in fact lower those annual premiums and other ways for the frugal homeowner to save on their homeowner’s insurance.

Will a New Roof Reduce My Insurance Premium?

The condition and performance of your roof affects the premiums. Think about it, it saves money for insurance companies by not having to pay for the damage that can happen to your home if your new roof has better technology incorporated to protect it. It might sound funny hearing the words technology and roofing in the same sentence, but over the past few decades there really has been an enormous advance in the science behind roofing materials. If you have a new roof installed, it may help to lower your insurance rates and decrease your chances of incurring damage from natural disasters. Safety precautions play a role in lower insurance rates. There are many types of roofs and each has its own pros and cons. 

On average, a new roof will have the following lifespans barring any natural disaster:

• Asphalt Shingles: 20-30 years

• Concrete or Clay Tiles: 35-50 years

• Metal Roofing: 30-50 years

• Rubber Roofing: 30-40 years

Obviously, when a new roof is constructed, your insurance adjuster will consider the type of roofing installed and the expected lifespan of its components. Before the installation of a new roof, you can ask your trusted insurance agent what they would recommend to reduce the cost of premiums as it pertains to roofing materials. Their answers may surprise you, because while some roofing materials are indeed expected to last longer, they may also be significantly more costly to repair. In addition, even within the particular category of roofing material you choose, i.e. asphalt shingles or metal roofing, there are various types of each. You might find an asphalt shingle with advanced coatings to better protect it from algae growth or make it more storm resistant. Those might qualify you for additional savings from your insurer. When thinking about a new roof, be sure to research any possible insurance breaks by discussing it with both your roofer and then your insurance agent. Often homeowners policies can be reduced by 5% or more, which could translate to thousands in savings over the course of the roof’s lifespan.

Why Do You Need to Update Your Insurance Information When Getting a New Roof?

Besides the obvious of savings, even minor roofing repairs and maintenance help to keep your insurance rates low. Maybe you added additional roofing vents to better expel the hot air in your attic. That is something that might be worth telling your agent in case they can note that in your policy and find a reduction. For instance, if you upgrade from an asphalt shingle roof to lets say a metal roof, it might surprise you to know that the insurance company considers one roof to be significantly more resistant to both fire and rot. That, of course, translates to less expense incurred by the insurance company should the unfortunate occur. It’s best practice to contact your insurance carrier whenever a major change is made to your home to ensure that your coverage aligns with the value of the home and its contents.

How Much Will Your Insurance Premium Change After You Install a New Roof?

There is no direct answer to how much they can adjust your premiums after the installation of a new roof, but it’s possible to see an annual reduction of anywhere from 5% to 25%. When factoring in the cost of a new roof, take that savings into account and it may make a more expensive roof installation cheaper in the long run than a simple roof repair.

Which Type of Roof Does Most People Have for Their Homes in North America?

The most common type of roofing material can vary from state to state. For instance, tile roofing is much more popular in Florida because of its long-lasting durability and increased heat dispersion. In America, by far the most prevalent roofing material is basic asphalt shingles. These basic shingles carry a significantly lower cost, fire-resistance, and hold their own in both hail and snow. That said, asphalt shingles are not necessarily the best choice for YOUR home. There are several factors you need to consider, such as the time you will live at your home, how each roofing material affects resale value, energy efficiency, insurance costs, longevity, and weather resistance. Talk over each factor when discussing the best choices with your roofing contractor before simply picking the lowest priced option.

What Are Some of the Best Ways to Reduce Homeowners Premium Rates?

Here are some basic tips for further lowering your homeowners’ premium rates before and after you consider a new roofing system:

• Shop Around - Just because you have been with your insurance agent for years doesn’t mean they are giving you the best rate. Insurance agents are people and while your home is top of your mind, it’s probably not top of theirs. Check to see if they are offering any new savings products that might help your current rate. Let them know you are checking the rates of other carriers too and trying to find the best deal for you and your family. Next, visit this link and request free quotes from competing insurers to see the best deals. Sometimes, you might save thousands, but in the worst-case scenario, you will sleep better at night knowing whether you have the best price and coverage available.

• Increase Your Deductible - By simply increasing your deductible, which is the amount of money you pay before the insurance company steps in, you can save a significant amount without a reduction in overall coverage. This works for home and auto.

• Combine Insurance Products With a Single Company - By including your home, auto, life, umbrella and any other insurance products into one company, you may find additional savings.

• Focus on Rebuild Costs - The land your home sits on isn’t at risk from most perils that your dwelling is. Make sure you are focusing on rebuilding cost rather than the overall amount you paid for your home which usually included the land underneath it.

• Consider Retrofitting - If you have an older home, upgrading electrical or plumbing systems while costly might help prevent major catastrophes from occurring in the future. Much like a new roof will lower the premium from an aged roof, a new electrical or plumbing system can do the same.

• Better Security - Every house has basic smoke detectors (or at least it should), but that’s simply the lowest rung in home safety. Many newer homes have advanced burglar alarms that call the police, sprinkler systems, or advanced fire detection. These features are valuable to an insurance company and should lower your rates considerably.

• Maintain or fix your credit - Good credit is essential these days and if your credit has slipped, it might be time to work to rebuild it. Modern insurance companies are using credit scores more and more these days to determine the insurance costs you pay.

Final Words on Insurance Premiums 

While spending the afternoon discussing ways to lower premiums may not sound as sexy as sitting on the beach, it’s a better use of time than almost anything else you could be doing. Savings you earn from shopping around or talking to your agent will continue to save you money month after month and year after year for life. Upgrading your roof and finding other ways to make your home less of a risk protects you and protects your insurance costs.

While I do not guarantee insurance savings when you replace an aging roof, it is ALWAYS worth it to spend the time to see if you may save money. Worst-case scenario is you catchup with your insurance agent and they can tell you about any new products or discounts available to you. There are worse ways to spend an hour than potentially saving money every single year.

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