Homeowner’s Insurance With Roof Exclusion?

Question

BP nation,

I received a letter from my insurer on one of my rentals saying they will discontinue coverage unless I replace the roof on this home. I just had the roof inspected and confirmed there are no signs of active leaks, but the age shows from the exterior, and the company sent out their inspector who commented on its appearance. I can replace the roof; however, I’d rather wait on it unless I have to. I read in another forum that some insurance carriers offer policies with roof exclusions. I’m yet to find a company that offers a product like that. Does anyone know of another insurer I could contact? I’m located in Indiana. If I find a policy that isn’t significantly higher than what I am currently paying, I’d like to switch policies heading into colder weather.

Thanks!

Jonah Hartsburg · Answer

@Kevin Koone Yes! That’ll be a nice perk for sure. And I likely won’t need to mess with that Cap Ex expense for a while. :)

Kevin Koone · Answer

Jonah, it should also help your rate!!!

Jonah Hartsburg · Answer

Thanks for everyone’s input! At this point, it seems they won’t be satisfied without a roof replacement and it may not be worth the hassle and premium to find a policy with a roof exclusion. I’ve got contractors bidding for a new roof now. In the long run, it likely matters little that I put on a roof now versus next year.

Kevin Koone · Answer

My companies do some sort of "inspection" after closing now on all their properties.  The idea of a roofers "note" is a good one but doesn't always work.  There are policies with roof "exclusions" but most of the time they are not with "preferred" carriers and cost as much if not more than you're standard policy.

James Mc Ree · Answer

Consider contacting a roofer to obtain a written report on the roof's condition. A report that says it is old, but solid may be sufficient for the insurance company to stop bothering you.

Patrick Hancock · Answer

@Jonah Hartsburg

Interesting and frustrating I'm sure.  Usually if there is an issue with the roof, plumbing, electrical etc it comes up prior to closing when obtaining initial insurance policy.  At least that has been the case in my experience.  There are many instances where there will be something that needs to be replaced or repaired per the insurance company and you will have "x" number days to repair after closing but as I mentioned usually this is discussed prior to closing so there are no surprises.

- Pat

Jonah Hartsburg · Answer

@Patrick Hancock

They informed me after I closed on the property. I closed on the property, at some point they sent an inspector out to look at the exterior, and then I got a random letter in the mail stating the repairs they needed completed to continue coverage.

Patrick Hancock · Answer

@Jonah Hartsburg

Hi Jonah,

Did the insurance company tell you this before or after you closed on the property? From your post it sounds like they informed you of this “out of the blue”.   I have seen insurance companies write policies for coverage excluding water damage but not the roof.

- Pat

Jonah Hartsburg · Answer

@Forrest Faulconer

I recently acquired this property, so there isn’t any damage other than natural wear on the roof. I may end up just replacing the roof and continuing coverage, but if I can get a few more years out of the current roof, I’d prefer not to replace it now.

Forrest Faulconer · Answer

Will your current insurance company not pay or partially pay for the roof replacement? In OKC, hail damage and storms cause a lot of damage to roofs, but I have always had that covered in my policy. Perhaps you could look into replacing the roof and then getting insurance that cover roofs from that point on.

Forrest