Investor · Eau Claire, WI · Member since 2019 · 20 posts · 6 votes
Im under contract to purchase a fourplex with a 16 year old roof. Freddie Mac guidelines say I need replacement cost value RCV on the roof, insurers I have spoken to will only offer actual cost value ACV. How have people been navigating this without replacing the roof?
Yes, I have contacted more brokers 4 of the 5 have zero options for coverage.
Insurance Agent · Member since 2020 · 177 posts · 76 votes
1y
If the home is in Wisconsin the carriers that will offer full RC on a roof over 15 years old is extremely limited. Most of the country is also the same, but some states the carriers will allow to 20 years old, but that is also very limited. If the roof is still in really good shape some carriers offer coverage just based off how the roof looks and not age. However; those carriers probably don't like insuring a 4plex. I will say you are very limited and my investors either replace the roof or just get a different loan to now insure the roof at RC. In your current situation you are basically stuck either paying a really high premium or needing to replace the roof.