The Differences Between Roofing Material and How it Relates to Insurance

Impacts Premium RatesDid you know that you might be paying a higher California homeowners insurance premium than your neighbor simply because of the type of materials used to construct your roof? Yes, it is true. California homeowner insurance companies may charge you higher overall premiums based on the materials that make up the composition of your roof.

The logic behind adjusting insurance premiums because of the type of roof you may have is based on two things. First, an insurance company may adjust their rates because your roof is made of materials that are more or less susceptible to damage or destruction from fire or other types of hazards. Second, they may adjust the premium you pay based on the expected life of your roof and the cost to repair or replace that roof.

Steel, tile and slate roofs are usually the strongest and safest types of roofing material. Not only do they hold up very well in all types of weather, but they are also very fire-resistant or fire proof. These types of roofs are more expensive to install that a typical tar and shingle roof, but, they also can last for 30 years or longer before needing repairs or replacement.

Now it may be impractical to tear up your old roof and replace it with one that will get you a lower California home insurance policy, but, if your roof is old and needs to be replace, you might consider an insurance-friendly replacement.

Check with your California homeowner insurance company to see if the offer discounts on certain types of roofs. While it may cost you more to initially buy the materials and have your roof installed, you will be adding value to your home. Also, if you plan to stay in that home, you will have a nicer roof to enjoy and at the same time add to the value of your home.

How home building material impacts your policy rate

Materials Impact on Premium RatesInsurance companies look at all aspects of a home to assess risk and determine the premium that they will charge. For example, they look at the location to see how close you are to a fire hydrant and whether you live in a high-crime neighborhood. If you live in a hurricane-prone area of the country, that can affect your rates. One of the most obvious factors that will influence the amount of premium you pay is the type of building materials used to construct your house.

The following are 6 ways building materials can impact your policy rate.

  1. Replacement Cost – More expensive materials cost more to replace and can raise the premium you pay
  2. Custom Features – If you have crown molding, expensive wooden doors, custom kitchen cabinets or a fancy wood deck, you may pay more because the replacement cost to put your house back in the same condition it was in can be high.
  3. Wood Frame Houses – Although they can be just as sturdy as concrete or brick, in the event of a fire, wood is much more susceptible to destruction. This may or may not raise your rates.
  4. Roofing – Having an old roof makes it more likely to need repair or replacement. Newer roofing materials tend to last longer and perform better so insurance companies assess them with a lower risk score than an old shingle roof.
  5. Electrical Wiring – If you live in an old house and your wiring is not up to code, chances of an electrical fire increase. The need to replace a home’s wiring so that it is up to code can add to the price of your homeowners insurance policy.
  6. Plumbing – Just like wiring, old plumbing is more likely to fail and possible cause serious water damage. Insurance companies take note and adjust the premium to reflect the added risk.