Replacing your roof is a major home improvement, and most homeowners think about the obvious benefits: better protection from rain and storms, improved curb appeal, increased home value, and fewer worries about leaks.

But there is another potential benefit you may not have considered:

A new roof could help lower your homeowners insurance costs.

Insurance companies look at many factors when determining what you pay for homeowners insurance, and the age, condition, and type of your roof can be among them. In fact, the National Association of Insurance Commissioners recommends asking your insurer whether improvements such as a new roof qualify for discounts.

That doesn't mean every homeowner will automatically receive a lower premium after replacing their roof. Here's what Chicagoland homeowners should know.

 

Why Insurance Companies Care About Your Roof

Your roof is one of your home's most important defenses against the weather.

Here in the Chicagoland area, roofs routinely face:

• Heavy thunderstorms
• Strong winds
• Hail
• Snow and ice
• Freeze-and-thaw cycles
• Extreme summer heat
• Falling branches and debris

An older or deteriorating roof can be more vulnerable when severe weather arrives. Missing shingles, worn flashing, deteriorated materials, and other problems can increase the possibility of water entering the home and causing additional damage.

From an insurance company's perspective, that can mean a greater chance of a future claim.

The Insurance Information Institute notes that the age of a roof can affect how insurers view a property. Older roofs may require inspections, may have different coverage conditions, or may make it more difficult to obtain certain policies.

A newly installed roof generally presents less of that age-related risk.

 

Will Every New Roof Lower Your Insurance Premium?

No.

A new roof does not automatically guarantee an insurance discount.

Every insurance company has its own underwriting guidelines, discounts, coverage requirements, and eligibility rules. Your premium is also based on many factors besides your roof, including:

• Where your home is located
• The home's replacement cost
• Your deductible
• Your claims history
• The amount and type of coverage you carry
• Other characteristics of the home
• Discounts available through your particular insurer

However, some insurance companies do offer discounts related to newer roofs or specific roofing materials.

For example, State Farm states that certain impact-resistant roofing products may qualify homeowners for a roofing-related insurance discount. The Insurance Information Institute similarly notes that roofing materials with fire- or hail-resistant characteristics may qualify for insurance discounts.

The best approach is to contact your insurance agent before and after replacing your roof and ask exactly what documentation and roofing specifications may qualify.

 

The Type of Shingle You Choose Could Matter

Not all new roofing systems are treated exactly the same by insurers.

In areas where hail and severe thunderstorms are common, some insurance companies may provide incentives for roofing products designed to better resist impact damage.

This can include certain impact-resistant shingles, sometimes referred to as Class 4 impact-resistant roofing products.

If you're already planning a roof replacement, it's worth asking your insurance company:

“Do you offer a discount for impact-resistant roofing, and which products qualify?”

Do this before choosing your roofing material. An insurer may have specific requirements for the manufacturer, product, impact rating, installation, or documentation needed to receive a discount.

 

Roof Age Can Affect More Than Your Premium

The cost of your insurance isn't the only reason your insurance company may care about roof age.

As roofs become older, some insurers may change how they insure them.

One important distinction homeowners should understand is the difference between Replacement Cost Value (RCV) and Actual Cash Value (ACV) coverage.

Replacement Cost Value generally pays the cost of replacing covered damaged property without subtracting depreciation, subject to your policy terms and deductible.

Actual Cash Value takes depreciation into account. That means the age and condition of the roof can reduce the amount paid toward a covered loss.

That can become extremely important after hail, wind, or another covered storm damages an older roof.

Replacing an aging roof may therefore offer benefits beyond the possibility of an immediate insurance discount. It may also affect how insurers evaluate the home's overall risk and available coverage options.

 

Should You Replace Your Roof Just to Save on Insurance?

Usually, insurance savings alone shouldn't be the reason to replace a perfectly good roof.

A roof replacement is a significant investment, and any potential premium reduction will vary considerably by insurance company and property.

However, if your roof is already approaching the end of its useful life, regularly needs repairs, has suffered substantial storm damage, or shows signs of deterioration, potential insurance benefits can become another factor to consider.

A new roof can provide:

• Better protection against water intrusion
• Improved resistance to wind and weather
• Improved curb appeal
• Fewer age-related roofing problems
• Potentially better insurance eligibility
• Possible insurance discounts
• Greater peace of mind during severe weather

 

Already Replaced Your Roof? Tell Your Insurance Company

One mistake homeowners sometimes make is replacing their roof and never notifying their insurance provider.

If you recently installed a new roof, contact your insurance agent.

They may ask for information such as:

• The date the roof was replaced
• Roofing contractor information
• Receipts or invoices
• Roofing material manufacturer and product
• Shingle type
• Impact-resistance rating, if applicable
• Photos of the completed roof

Keep your roofing paperwork in a safe place. Having documentation showing when your roof was installed can also be valuable years later if you sell the home or experience storm damage.

 

Ask Your Insurance Company These Questions Before Replacing Your Roof

If you're considering a roof replacement, a quick conversation with your insurance agent could be worthwhile.

Ask:

Do you offer a new-roof discount?

Do you offer discounts for impact-resistant shingles?

Are there specific roofing products required to qualify?

Will replacing my roof change the way my roof is covered?

What documentation will you need after installation?

Getting those answers ahead of time may help you make a more informed roofing decision.

 

Is It Time to Have Your Roof Checked?

You shouldn't have to guess about the condition of your roof.

If your roof is getting older, has recently gone through severe Chicagoland weather, or you're wondering whether replacement makes sense, having it professionally inspected is a good place to start.

Keystone Exteriors can evaluate your roof's condition, identify signs of damage or deterioration, and help you understand your options if repairs or replacement are needed.

And if you do replace your roof, don't forget one final step:

Call your insurance company.

That new roof may be protecting more than your home—it could potentially help you qualify for insurance savings as well.

 

Need a Roof Inspection in the Chicagoland Area?

Contact Keystone Exteriors to schedule an inspection or learn more about your roof replacement options. We'll help you determine the condition of your current roofing system and recommend the right solution for your home.