The condition of your house and its major components can have a direct impact on the amount you have to pay in homeowners insurance premiums. In many cases, replacing the roof can save you a bundle on your insurance costs.
Why a New Roof Might Lead to Lower Insurance Premiums
Homeowners insurance companies set rates based on a customer’s level of risk. If your roof is old, worn out or approaching the end of its lifespan, your home is more susceptible to leaks and storm damage than a house with a newer roof. You will therefore most likely have to pay higher homeowners insurance premiums.
A new roof can protect your house from the elements, which means you’ll be less likely to file a homeowners insurance claim. Replacing your roof might therefore lead to a substantial reduction in your premiums because you will be a lower risk than someone who owns a house with an older roof.
Several Factors Influence Insurance Rates
The amount you can save will depend on the type of material that your new roof is made of, how long that material typically lasts, and whether the new roof is made with impact-resistant materials that can protect it from severe storms. Where you live and the risk of storms and natural disasters in your area can also influence the amount you’ll have to pay in homeowners insurance premiums.
A roof made with durable, long-lasting or impact-resistant materials will cost more to install, but it might also lead to a significant drop in your homeowners insurance rates. You might find that the amount you will save will more than offset the additional cost for roof replacement.
Each homeowners insurance company has its own way of assessing risk and setting premiums. If you shop around and compare rates, you might discover that another insurer will offer you lower premiums than your current company.
A New Roof Won’t Always Lead to Lower Insurance Rates
Why you replace your roof can be an important factor. If you choose to replace your roof because it’s old and you pay for the work yourself, you might see substantial savings on your homeowners insurance.
If your roof gets damaged in a storm and needs to be replaced, the insurer will pay for it, as long as the damage was caused by a covered peril and can’t be attributed to neglect or lack of maintenance. After you file a claim for repairs related to storm damage, your insurance premiums might increase.
