Can I get roof replaced with insurance?

5 Replies

3 weeks ago I had my own roof replaced because of wind damage. I got a $8000 roof for $750 deductible. 

I just had my contractor tell me the rental property I acquired last year needs a new roof and it looks like there is definite wind damage. Would it be a good idea to try and get another roof in such a short amount of time? Could they drop me?

My own home is through nationwide - I have 11 single family rental homes all on a commercial insurance policy though nationwide but covered by 3rd party.

I recommend you consult your insurance advisor about this.

I am no expert, but having spent the past five years working with insurance both in the U.S. and in Norway I can tell you that wind damage is not just wind damage to insurance companies. 

Claim handlers usually wanna know much much wind we're talking about, and have set matrixes to determine whether the wind can be filed under "extreme weather" or not.

@Adam Craig , I can't speak with any firm knowledge about whether Nationwide would drop you or not.  

However, I can say that I was a long time Nationwide policy holder on both my primary residence and my rental property.  Earlier this year, I shopped around and let's just say the results were jaw dropping.  

I saved about 15% on my primary residence.  On my rental properties, I saved hundreds and hundreds of dollars each year.  Pure and simple, Nationwide screwed me.  I even had two Nationwide employees admit to me that their income property coverage prices are ridiculously high and advise me, in so many words, to shop around.  To make matters worse, when I finally canceled my Nationwide policy, they tried to charge me a couple hundred dollars on the back end.  It took a threat to call my lawyer before they "reworked" the numbers so I didn't "owe" anything.

I can't say that you're being overcharged, but you should definitely get some quotes.

Good luck.

@adam You can file the claim if the damage occurred while you were the policy owner during the date of the wind storm. Typically insurance companies give you a calendar year to file a claim due to a storm/ act of God.  

@Adam Craig

Too many claims will get you canceled.  No one can give you the exact # of claims or amount of payout that will get you canceled as the insurance market is different region to region.   

I can tell you that  the commercial insurance companies monitor an accounts "Loss Ratio".  This is the % of payout for every $1 they collect.  Usually looking back 3 or 5 years.  If your 5 year premium is $14,000, and the roof claim was $7,000, you have a 50% loss ratio.

Anything under 30%, they are making $.  70% is their break even.  Anything over 70%, they will consider raising rates or canceling. 

If they cancel, that is when you may get large premium increases as no insurance company wants to write an account that has multiple roof claims in the last few years.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you