Home Insurers Are Taking a Closer Look At Your Roof

What’s that in the sky? Is it a bird? A plane? No, it’s just a drone taking pictures of your roof for your home insurance company.

With both the frequency and severity of extreme weather increasing, it’s not a surprise that home insurance companies are wanting to double check they are paying appropriate amounts for roofs that have been damaged by weather like hail.

Companies like Wawanesa have begun to access drone photos taken by Google, or in some cases send out their own drones, to determine the condition of roofs in the event of a claim. This is all part of a larger move to settle roof surface claims based on Actual Cash Value (ACV).

When it comes to determining Actual Cash Value (ACV), insurance companies are needing more data than just the age and material of your roof. Photos will go a long way to help them see the condition of your roof prior to any claims being made. But it’s not always straightforward. The actual cash value of a roof that was installed two years ago is significantly less than the actual cash value of a roof installed today. Why? Construction inflation, supply chain issues, and employment issues are all contributing to higher costs.

Actual Cash Value vs Replacement Cost

In some cases, you may be offered the option to insure actual cash value of your roof or replacement cost.

The ACV of your roof will go down with the age and wear of your roof and is not tied in any way to what it will cost you to replace your roof if necessary. This is a good option if your preference is to pay lower premiums and then make up the difference between the ACV and replacement cost at the time of a claim.

If given the option to insure your roof for replacement value, your insurance claim will be determined by the cost of materials and labour at the time of replacement. You will be guaranteed a roof that is of the same material or better (depending on if the exact material is no longer available). Insuring for replacement value rather than actual cash value may carry a slightly higher premium.

What can you do to make sure you get your roof’s worth?

1. Make sure your insurance company has the right information about your roof including date it was installed and materials used.
2. Supply your broker/insurance company with photos of your roof yearly at renewal time if it’s easy for you to access.
3. If you’re planning on upgrading your roofing materials, consider using Level 4 impact resistant materials – these last longer and may get you a discount on your insurance

As independent insurance brokers, our job is to help you understand the changes that happen within your insurance coverage and help you make informed decisions. If you have any questions about what the change to ACV will mean for your home or property insurance, please get in touch.