A House Without a Roof

I have an agent partner who was helping some clients on a purchase this week. I am a consultant for the clients and the agent as well.

Inspection was completed and overall, the house was good, except that darn roof. It’s a 3 tab shingle roof and 24+ years old. That baby is ready for replacement.

I told them to go get insurance quotes right away. We want them to know exactly how much the premiums would cost with that old roof and what the policy would cover.

Well, the insurance company agreed - roof was ready for replacement - and they were going to have no part in it.

Insurance companies will no longer insure a roof at end of life - in fact, many won’t insure a 3 tab roof at all. (This also means they won’t insure any resulting damage from a roof incident/failure).

Seems a bit like buying a house with no roof…

Given the rise in storm damage claims over the past decade (primarily in the upper midwest)…insurance companies are cracking down. If you have an old roof, it’s no longer their problem. Similar to windows, doors, siding, etc - if it needs replacing, it’s on you. Even if it’s newer, but older than 10 years, your premiums will close to double.

This is becoming the new norm and will place an incredible new burden, or at least a factor for consideration, on homeowners. Understanding the replacement cost for a roof (and possibly the decking underneath it) will be critical as people purchase new properties or even as they live in a home for longer.

A real estate consultant like *yours truly* becomes invaluable as I partner with your agent. I know these nuances with loans and insurance and repair costs while the agent focuses on the market, hunting deals, and relationships with other agents.

These purchasers had to factor in an additional $18k for roof replacement to get adequate insurance on the house. We were able to get this information during the inspection period where they could negotiate or walk away rather than finding out a few weeks before closing as they were finalizing insurance quotes.

Don’t get caught with a house with no roof. Discover the power & peace of mind of a real estate consultant no matter where you are in your home ownership life.