I have been involved in the residential roofing industry for over a decade and built my business through referrals from insurance agents. In 2021, significant changes began to occur within the roofing industry. The company known for its "Good Neighbor" slogan was once one of the most generous in Georgia when it came to roof replacements. Often, even if I informed homeowners that their roof damage did not warrant an insurance claim, they would proceed with filing one anyway, and the insurance company would frequently replace the roof. This practice of replacing roofs led to the current situation of a virtual halt in roof replacements in Georgia.

The transition from being the best to being the worst in terms of roof replacements by the largest insurance company in Georgia has been notable. I have encountered their adjusters, some of whom could not differentiate between traditional three-tab shingles and architectural shingles. There are recorded instances of other roofing companies meeting with adjusters who were unfamiliar with roofing components saying the roof could be repaired but didn’t understand how to repair it. Currently, many insurance companies have adopted policies of denial or minimal repair. To be fair, it was not solely the fault of insurance companies. Due to the lack of regulations in Georgia, numerous companies employed door-to-door inspectors who often caused more harm than good. Consequently, insurance companies paid millions in unnecessary claims, leading them to cease coverage abruptly.

Also, part of the problem is homeowners expect to have their roofs replaced by their insurance company when the roof starts to age and shows signs of wear and tear. Most of the time, the homeowner doesn’t know what their policy states and they look for the least expensive coverage. In most instances, insurance companies are liable for damage to the roof if it’s sudden in occurrence. That means if the damage to the roof is caused by a hail storm, wind storm or a tree falling through the roof then the insurance company should assume liability. It does not assume liability because the roof is 18 years old and needs to be replaced.  

Insurance companies now tend to deny coverage for roofs that are near 15 years of age. Additionally, homebuyers face difficulties obtaining insurance for roofs older than 10-12 years. One cost-cutting measure involves offering lower premiums for higher deductibles based on the value of the home. For instance, a 2% deductible on a $500,000 home means the homeowner is responsible for the first $10,000 in repairs. Another approach is to pay the Actual Cash Value (ACV) instead of the full replacement cost. The ACV is calculated based on the roof's age; for example, a 30-year shingle on a 15-year-old roof would be valued at 50% of the replacement cost minus the deductible.

Where does this leave homeowners? Unfortunately, the current situation leaves limited options. Roof replacements are now typically covered only in cases of severe storms with documented wind or hail greater than an inch, or when a tree damages the roof due to such storms. The era of routinely replacing old roofs through insurance claims is over.

What should you do if your insurance claim is denied or if you need a new roof? Contact Home Run Roofing at (770) 361-9471. We can assess your roof to determine the viability of challenging the insurance companies through a Public Adjuster or provide an estimate for roof replacement. Home Run Roofing has partnered with Acorn Financial to offer financing options for covering all or part of the costs.