Category: Home Insurance

A lot of your home’s features will influence the amount you’ll pay for your home insurance, from its location and ZIP code to when it was made and its construction materials. But did you know that, of these features, your roof is one of the biggest factors? After all, it’s the first line of defense against the elements.

The newer the roof, the better your insurance rates. But there’s more to it than that. Let’s get into it.

Why is roof age a factor in home insurance rates?

Simply put, a newer roof has a likelier chance to hold up against the elements and can have unforeseen issues that can cause deterioration and later snowball into worse problems. Since roofs can be the first line of defense that your home has against things like fire, wind, hail, and rain, the more important they’ll be from an insurance perspective when it comes to preventing huge claim payouts.

Roofs 20 years and older may even need to be inspected before an insurance company will offer coverage. This typically means that they’ll send out a team of professionals to check out your property and assess your roof’s “readiness” to handle unexpected issues. Other insurance companies will agree to cover your roof’s actual cash value if it’s a bit older, meaning that they’ll only cover what it’s worth now minus depreciation. And some insurance companies? They’ll just refuse to cover homes with roofs 20+ altogether, as the risk that older roofs pose might just be too great.

Shape of roof

The shape of your roof can affect your costs just as much as the age, but the shape that will save you money is dependent on the environment where you live. If you live in an area that sees a lot of wind or even hurricanes, a hip-style roof is best.

Flat roofs overall are more expensive to insure since they collect water easier and can accumulate damage with time. They also have a shorter lifespan than other roof styles.

Roof materials

Your insurer will also take into account the type of roof material your home has, as some materials can withstand the impact of nature better than others. Some roof materials are also better in certain environments – for example, wood shingles may not be priced favorably in areas prone to fire.

Asphalt shingles are generally an all-around decent choice, as they are easy to install over top of existing roofs. They are, however, slightly more susceptible to decay.

Slate can be a good option for areas that frequently experience high winds and are relatively low maintenance. They are expensive to install and can be more susceptible to impact damage, like from hail. Their high replacement cost can also mean higher premiums.

Metal is another (increasingly more popular) option. It’s durable, fire-resistant, and reflects sunlight, but it also dents easily from impact and has a high replacement cost.

Wood shingles are not a great idea for areas prone to wildfire as some insurance companies will refuse to insure homes with wood shingle roofs, but they are more affordable. Some people always enjoy the cosmetic appeal of them. Yet, on average, wooden roofs cost about $100-$200/year more than any other roof material to insure each year due to their fire risk.

Will renovating my older roof lower my home insurance costs?

In theory, yes. Installing a new roof when your previous roof was 10–20+ years old can save you up to 35% on your homeowners insurance premiums, but discounts will vary depending on the type of roof that was installed (shape and materials). Some roofs are considered “impact-resistant” or have wind mitigation properties, which can qualify you for additional discounts.

Roof replacements themselves can be costly, however. Net savings are not guaranteed, and it’s wise to talk with your agent about how much you’d save by renovating your roof versus keeping the old roof and continuing with your current insurance rates.

Note as well that if you need a new roof due to a disaster, like an unexpected fire, and you replace your roof, it’s possible that your replacement could even increase your rates. This depends on the age and condition of your roof prior to the event.

Is roof replacement covered by my home insurance?

It depends on why your roof needs replacement. A typical replacement over lack of maintenance or because the roof has simply aged out won’t be covered by your home insurance, since home insurance is designed only for unexpected or sudden incidents. For example:

*Note that while some companies just won’t cover homes with older roofs, some companies will only cover them for their ACV, and some companies will insure them but only once an inspection has been complete.

If your insurance company says you’ll qualify for a discount upon replacing your roof, that doesn’t mean your roof replacement will be covered. You will, however, get a discount upon doing so as a thank you for prioritizing the safety of your home.

Have further questions about roof replacement and your home? Have you recently renovated your roof in the last 10 years or so? Let us know! We’ll be happy to go over the benefits with you and may be able to help you find eligible discounts, which can save you hundreds of dollars on your insurance each year.

According to the Insurance Journal.com, homeowners are finding it more and more difficult to afford insurance on their homes as climate change creates an environment where the yearly cost and frequency of claims is increasing with no end in sight.

In short, climate change-induced weather changes, i.e., the increase in the severity and frequency of storms, wildfires, flooding, and other events, cause insurance companies to pay out more for claims, meaning they need to increase their premiums to offset the losses. This means that homeowners everywhere pay more for their insurance, even if they themselves have not faced a loss. Let’s explore how that works in further detail.

Assessing risk: Climate change’s influence on underwriting

An increase in severe weather, regardless of how it’s caused, may not directly impact all homeowners. They can impact a specific geographic area or even city, but the impacts increase the overall “risk profile” for insurers. A risk profile is essentially the likelihood of making a claim; a lot of different things influence your risk profile, but your geographic area and its exposure to damaging events (like fires, storms, flooding, and so on). Other things can affect your risk profile too, like the age of your home, whether or not you’ve updated your roof in the last decade, your insurance history, and so on.

The frequency and severity of weather events can mean that insurance companies insuring the properties where those events have occurred then face higher probabilities of having to pay out claims. This prompts them to adjust premiums accordingly. Keep in mind that this can happen on a small-scale to a certain geographic area and on a much larger scale, impacting cities or even entire states.

The rising cost of re-insurance

Did you know that insurance companies need insurance too? Reinsurance serves as insurance to help insurance companies protect themselves if there’s a particularly large or sudden loss that their existing pool of payout money can’t cover. Reinsurers are having to pay more claims with rising climate-related disaster frequency and severity, therefore having to increase their insurance costs for primary insurers. Insurance companies may offset these rising costs by passing them on to homeowners through higher premiums as well.

Expanded risk zones and reassessment of property values

With the changing climate, previously considered low-risk areas may now be prone to flooding, wildfires, or other hazards. As a result, insurers are reevaluating risk zones and adjusting premiums accordingly. Homes located in areas now deemed higher risk may experience significant premium hikes, regardless of individual homeowners’ claims histories.

Sustainability concerns over the long-term

With climate change projections indicating continued increases in extreme weather events, insurers must ensure that their business models remain viable in the face of mounting losses. This may involve restructuring policies, increasing premiums, or even withdrawing coverage from the most vulnerable areas. All insurance companies refuse the right to write new business, so if you have purchased a new home in a wildfire zone, your chances of getting insurance may be much more limited.

Industry standards and regulatory pressures

As the climate change phenomenon evolves, government regulators and industry bodies are putting increasing pressure on insurers’ responses. This can manifest as stricter regulations, requirements for increased reserves, and mandates for companies to disclose their exposure to climate-related risks. Compliance with these standards may necessitate adjustments to premiums, impacting homeowners across the board.

Coverage gaps in your home insurance could cause financial vulnerabilities

Coverage gaps, usually as a result of failing to address shifts in home value over time or after renovations/upgrades, can leave homeowners vulnerable to unexpected expenses. This is even greater of an issue during a period where climate-related losses are so rampant, since insured homeowners may not get back the full value of what it would take to rebuild their home in the event of an unexpected loss.

In the absence of adequate coverage, homeowners could struggle to recover financially from a loss, potentially resulting in debt or financial hardship. Coverage gaps could also mean homeowners are exposed to risks that they might not anticipate.

Mortage lenders typically require homeowners to maintain adequate insurance coverage, and it’s not unlikely that restrictions and regulations will continue to increase as we experience more and more severe weather. Coverage gaps can result in non-compliance with lenders in this case, so we advise working with an insurance agent to review your policy and ensure everything is up to snuff – both in terms of covering your asset and complying with any regulations you may be faced with.

Concerned? Call us

Climate change has had a multifaceted influence on the cost of home insurance for homeowners, even those who haven’t directly experienced a loss. This increase can be confusing, frustrating, and downright distressing for some people, especially with the cost of living so expensive as is.

If you’re confused about a recent increase in your home insurance costs, call us. We’d be happy to go over your policy, discuss home insurance savings opportunities, and provide our expert insight. Give us a call today or request a quote.

As the snow begins to melt and the first signs of spring start to emerge, it’s crucial for homeowners to prepare their properties for the changing seasons.

This period, while often welcomed for its warmer temperatures and renewed outdoor life, also poses unique challenges to your home’s integrity. The annual spring melt can lead to potential water damage, foundation issues, and other costly problems if not properly managed. AHI Group understands the importance of safeguarding your home against seasonal risks, not only for the sake of preserving your investment but also for avoiding future impacts on your home insurance premiums.

Our top tips for protecting homes against spring melt

The transition from winter to spring can bring about an array of challenges, including water damage and structural issues. To ensure your home remains safe and intact during this period, we’ve compiled a list of top tips for effectively protecting your property. These strategies are designed to prevent the common pitfalls associated with the thawing process, helping you avoid unnecessary repairs and insurance claims. Let’s dive into these preventative measures to keep your home in pristine condition.

Clean gutters and downspouts

Ensuring your home’s gutters and downspouts are clear of debris is essential for proper water flow away from your property. Blocked gutters can lead to water overflow, causing damage to your roof, siding, and foundation. Regular cleaning before and during the spring melt can prevent these issues.

Inspect and repair roof damage

Winter weather can be harsh on your roof. Come spring, inspect your roof for any signs of damage such as missing shingles or leaks. Early repairs can prevent water from entering your home, safeguarding against structural damage and mold growth.

If you didn’t already know, recent roof updates – even within the last 10 years – can impact your insurance rates, potentially qualifying you for lower premiums. If you’ve modified or updated your roof within the last decade, give us a call.

Grade your lawn away from your home

Water pooling around your foundation can lead to significant issues. Ensure the ground slopes away from your house, facilitating water runoff to prevent foundation damage. This may involve regrading your lawn or adding soil to certain areas.

Install a sump pump

A sump pump can be a homeowner’s best defense against basement flooding during the spring thaw. If you already have one, test it to ensure it’s in working order. Installing a battery backup is also advisable in case of power outages.

Extend your downspouts away from your home’s foundation

Downspouts should extend at least 5 feet away from your home’s foundation. This helps direct melting snow and rainwater away from your property, preventing water intrusion and protecting your foundation.

Seal gaps and cracks in the foundation of your home

Inspect your home’s foundation for any gaps or cracks. These can be entry points for water, leading to leaks and moisture problems inside your home. Sealing these openings can significantly reduce the risk of water damage.

Insulate your pipes

Freezing temperatures can cause pipes to burst, leading to water damage. Insulating your pipes, especially those in unheated areas like basements and attics, can prevent them from freezing as the temperatures fluctuate during the spring thaw.

Create a clear path for snowmelt

Strategically shovel snow away from your home’s foundation while it’s still winter. Creating paths for snowmelt to flow away from your property can prevent water accumulation and potential damage to your foundation and basement.

How do spring melt insurance claims affect your premiums?

Water damage and foundation damage resulting from the spring melt are among the most common and costly claims homeowners face. When an insurance company receives these claims, it often indicates a higher risk of future claims, which can directly impact your insurance premiums. The rationale behind this is rooted in the way insurance companies calculate risk and determine premium rates. Each insurance company has its own database and statistics for how insurance premiums are gauged.

If a home has a history of water or foundation damage, insurers perceive it as more likely to encounter similar issues in the future. This perceived increase in risk often results in higher premiums for the homeowner, as the insurance company aims to offset the potential cost of future claims. This offset may be greater the more claims you file or even if the few claims you do file are severe in nature.

By taking proactive measures to protect your property, you can minimize the likelihood of damage and the need to file a claim. This can help keep your insurance record clean, which is beneficial for keeping your insurance costs low over time.

Have any questions about protecting your home against spring melt? Report a claim, or ask us about our advice on what to do about recent damages? Recently updated your roof? Give us a call here at AHI Group and we’d be happy to help you.

Kansas recently experienced an unexpected snowstorm, burying the bulk of the metro area in 6 inches of snow. As the snow settles, the real work begins to ensure a smooth recovery process. While this particular storm may not have been “world-shattering” for many residents, it’s a fair reminder of our need to be prepared in the event of unexpected disasters. In this guide, we’ll walk you through the essential steps to take after a major weather event, offering valuable insights on how to restore normalcy to your living or working space.

And, for those seeking professional assistance in the cleanup after a snowstorm (even our most recent one), we’ve partnered with Sage Restoration, experts in emergency services such as water extraction, fire, and smoke cleanup. If you need to make a claim, we highly advise enlisting their services to get yourself back to normal ASAP.

Step one: Assessing the damage and taking stock of the aftermath

Begin by conducting a thorough assessment of your property, inside and out. Check for visible damages such as roof leaks, broken windows, or structural issues. Pay close attention to the foundation and ensure there are no signs of shifting or cracking. Additionally, inspect electrical systems and appliances for any potential hazards.

As you survey the exterior, be mindful of fallen trees or branches that may pose immediate dangers. Note any downed power lines and keep a safe distance. Take photographs or videos to document the extent of the damage for insurance purposes. This documentation will serve as valuable evidence when filing claims. And, perhaps most importantly, consider your own safety and if you are worried about re-entering your home after a major event, consult with professionals before re-entering.

Step two: emergency measures: Prioritizing safety and mitigation

Once you’ve evaluated the damage, focus on immediate actions to safeguard yourself and prevent further harm to your property. Prioritize safety by turning off gas and electrical utilities if necessary. If you smell gas or suspect a leak, evacuate the premises immediately and contact the utility company.

Mitigate risks by securing vulnerable areas. Cover broken windows with plastic or boards to prevent further exposure to the elements. Use tarps or buckets to collect water from leaks and reduce interior damage. If water has infiltrated your home, place towels or buckets strategically to minimize its spread.

Consider seeking temporary shelter if your home is unsafe. Local authorities often provide emergency shelters during severe weather events.

Step three: Dealing with flood and moisture issues

As the snow begins to melt, one of the primary concerns is water damage. Addressing this issue promptly is crucial to prevent long-term structural problems and mold growth. Start by identifying areas affected by flooding or excessive moisture. Remove standing water using pumps or wet vacuums, and open windows and doors to enhance ventilation.

After extracting visible water, focus on thoroughly drying the affected spaces. Use dehumidifiers to reduce humidity levels, aiding in the prevention of mold proliferation. Remove wet or damaged materials such as carpets, insulation, and drywall to minimize potential health risks and accelerate the drying process. Professional water extraction services, like those offered by Sage Restoration, can ensure a comprehensive and efficient restoration of your property.

Step four: Rebuilding and recovery

After mitigating immediate concerns, shift your focus to rebuilding and long-term recovery. Begin by developing a comprehensive recovery plan. This should outline the necessary steps, timeline, and budget for the restoration process. Engage with professionals, such as contractors and restoration experts, to assess the structural integrity of your property and create a detailed plan for reconstruction.

Coordinate with your insurance company to understand the coverage and file necessary claims. Keep all documentation from the initial assessment, as well as receipts and records of expenses incurred during the recovery process.

Partnering with the best

AHI Group is proud to partner with some of the best companies in KS, MO, and NE – like Sage Restoration. The restoration and recovery process is one unspoken part of insurance that often goes underappreciated. Insurance agencies and companies work with top-rated restoration services to ensure their policyholders’ expedited recovery and return to normal.

For further questions about recovering from a major weather event, like a huge snowstorm, give us a call here at AHI Group. We’re more than happy to discuss your needs or give you guidance when you need us most to help you get back to life as you once knew it.