Insurance Matters in Roof Replacement decision

In this blog series, I am discussing the value of “upgrading” to longer-life shingles, and if it is worth it to you, as the homeowner, to spend more money when replacing your roof.  When you call roofing companies and get bids to replace your roof, you are looking at the bottom dollar on the bottom of that bid.  How large a check are you going to write?  What other costs are there?

I own my house here in Lees Summit.  Technically I don’t, I pay the mortgage company and they own the house.  The mortgage company requires me to purchase homeowners’ insurance.  This is just like you, if you are talking to roofing contractors (renters don’t put new roofs on houses they rent, that would be the landlord’s responsibility).  If you call your insurance agent, you will qualify for a significant discount when you put on a new roof.  Your insurance agent calculates this discount simply based on the age of the roof, and doesn’t count any other factors in the discount.  Your discount is the same whether you use the cheapest 3-tab shingles (perhaps we get 10-years out of these) or the most expensive slate (which has stood the test of time and we might expect 100+ years).  Your discount is generally good for about five (5) years, and then starts to taper down.  By the time the roof is ten (10) years old, you have no discount.

When you add that “new” roof discount over ten (10) years, you will note that (in our area) adds up to probably 50-75% of the cost of a new roof.  You pay for a new roof today, which reduces the risk that your insurance company has on storm damage to your house so you are lower risk.  As that roof ages, your damage risk increases, and your rates increase accordingly.  However every time to put on a new roof, you get to push the “reset” button and start those discounts again at year zero. 

​When you factor these insurance discounts into your roof investment decisions, this discount becomes significant cost savings.  Every time you replace that roof, you qualify for that discount.  Now then, what prevents you from replacing a roof every five (5) years?  Nothing, except that we have to consider the idea is to maximize the value of your investment.  If you need help deciding when is the most cost effective time to replace the roof on your own home, contact your local roofing contractor.  We're always happy to give you advice that gives you the best bang for your hard earned buck.

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