October 24, 2024
Roof Age Matters for Commercial Property Insurance
For many business owners, protecting their property is at the front of their minds. Commercial property is at the forefront of our business, where our customers find us, our employees work, and we house our products. A well-made roof is often the first line of defense in protecting our properties; it’s also a major contributing factor to your commercial property insurance rates and coverage options.
An older roof may be vulnerable to losses and thus more difficult to insure and face exclusions. To combat difficulties with insurance, property owners should practice proper maintenance of their roof and provide adequate information to their insurance company.
Why does your roof matter?
Insurance companies assess the potential risks associated with the roof before insuring the property, an older roof is more prone to cracking, sagging, and leaks and more susceptible to damage or possible collapse. These exposures are the key factors affecting your insurance premiums and coverages.
Here are some reasons your roof may be of concern:
- Decreased Durability: With age, a roof will begin to deteriorate, which makes them more prone to leaks, damage, and failure. This will increase the likelihood of a claim for roof repairs or related damages.
- Higher Likelihood of Claims: An older roof will not hold up as well in weather events, creating more frequent repair claims and higher payouts.
- Potential for Higher Repair Costs: Older roofs suffering from extensive damage are costly to repair and sometimes need to be replaced entirely.
How roof age affects insurance premiums and coverage:
- Higher Premiums for Older Roofs: Insurance carriers typically charge a higher premium for an older roof, as claims are more likely and repair costs are higher. A roof is considered high risk if it is over 20 years old and will see higher premium rates as a result.
- Limited or Denied Coverage: Some insurance carriers will limit the coverage they are willing to offer an older roof to compensate for the higher risk and replacement costs associated with the roof. Sometimes, the insurance carrier may decline coverage altogether if it is deemed too old or in poor condition.
- Roof Inspection Requirements: Insurers often require an inspection of the roof of a property before they agree to insure it. If the roof does not pass inspection, the property owners may be necessary to replace or repair the roof before coverage.
Roof Replacement vs Repair: What’s Best for Your Insurance
When your roof nears the 20-year mark, it is time to weigh the costs of replacement vs repair. Although roof replacement can be a costly investment, it may be worth the replacement costs rather than the potential increase in insurance premiums and risk of reduced coverage.
- Immediate Savings on Premiums: Insurers can offer discounts or reduced premiums for properties with new roofs associated with lower risks.
- Better Coverage Options: A new roof qualifies your property for better coverage options, which could make you eligible for full replacement cost rather than the depreciated value of the roof.
- Improved Property Value: A new roof can also offer the benefit of an improved property value, making it a worthy investment.
Proactive Roof Maintenance and Documentation
Regular maintenance and repairs can help prevent costly claims and keep premiums low. Proactive maintenance efforts such as annual inspections, prompt repairs, and accurate records give insurance companies confidence in the property owners.
- Annual Inspections: Inspections once a year show proactive steps taken to find needed repairs and do any necessary maintenance.
- Prompt Repairs: Addressing any minor issues as soon as they’re found prevents small problems from becoming big ones.
- Keep Records: Proper documentation is valuable for both the insurers and any potential future property buyers, keep any documents regarding roof inspection, repairs, and replacements.
When to Talk to Your Insurance Agent
If you think your roof may be affecting your property insurance, speak with your insurance agent and assess your current coverage. It may be time to consider investing in repairs or even replacement. We understand that your commercial property is a big investment, our team can help provide additional insights on maximizing your insurance protection and minimize risks. Contact us today for a free insurance consultation about your commercial property.
Author | Sembree Yeary
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