How Much Does a New Roof Save on Homeowners Insurance?
Updated: September 23, 2024
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Your roof is more than just a protective cover; it significantly determines your homeowners insurance premiums. Investing in a new, more durable roof can lead to substantial savings, with discounts varying based on several factors. From the type of material you choose to the regional weather patterns, every aspect of your roof matters. Learning how to optimize these elements can help you save on insurance costs.
Investing in a new roof can significantly reduce your homeowners insurance premiums, with potential savings ranging from $205 to $1,031 annually.
The type of roofing material you choose greatly influences your insurance savings. More durable options, like tile roofs, often yield higher discounts.
Regional weather conditions are crucial in determining insurance savings, and durable roofs in severe-weather areas often receive larger discounts.
If you get a new and better roof, your savings on homeowners insurance can start from an average of $205 per year for $100K in dwelling coverage to $1,031 per year for $1 MM in dwelling coverage. Several factors determine how much you can save, including your existing roof, new roof material and coverage limits.
Use the table below to toggle between your roof type and desired coverage level and see how much you can save or lose when you get a new roof.
| Composition | $1,548 | $0 | $125 |
| Shake-Treated | $1,673 | $-125 | $0 |
| Tile | $1,468 | $80 | $205 |
Installing a new roof can lead to more affordable homeowners insurance, but the amount you save depends on the type of roofing material, the roof's age and regional weather conditions. Insurance companies offer different discounts for new roofs, so it's essential to shop around. By understanding these factors, you can maximize your savings.
Roofing Material
Insurance companies often provide better discounts for roofs made from durable materials like metal or tile due to their high resistance to damage. For example, a tile roof might qualify for a higher discount than a composition roof due to its longevity and fire resistance.
Roof Age
Newer roofs are more likely to earn discounts because they're less prone to leaks and damage. A newly installed composition roof can result in savings, but an older shake-treated roof may not qualify for the same level of discount due to potential wear and tear.
Regional Weather Conditions
In areas prone to severe weather, such as hurricanes or hailstorms, installing a durable tile roof can result in larger savings due to its ability to withstand harsh conditions. Discounts are available for shake-treated roofs in milder climates, with even bigger savings offered by weather-resistant materials.
Insurance Provider Policies
Different insurers have varying policies regarding new roof discounts, with some offering more generous reductions than others. For example, one provider might offer substantial discounts for tile roofs due to their durability, while another might give similar savings for composition roofs if they are new and well-installed.
Each roof type offers different levels of durability, maintenance requirements and insurance implications. This is why choosing the right roof type for your home is crucial, not only for its appearance but also for its impact on your homeowners insurance.
Understanding the pros and cons of shake-treated, composition and tile roofs can help you make an informed decision.
Roof Type | Description | Pros | Cons | Durability | Maintenance |
|---|---|---|---|---|---|
Shake-Treated | Made from split wooden shingles, typically cedar, and treated with chemicals for added resistance. | Natural aesthetic, good insulation, can last 20-40 years when properly maintained. | Higher maintenance, more susceptible to weathering, can be more expensive. | Moderate to High (20-40 years) | High - Requires regular inspections and treatment to maintain integrity. |
Composition | Asphalt shingles with a fiberglass or organic base, coated with asphalt and mineral granules. | Affordable, low maintenance, versatile in appearance. | Less durable in extreme weather, shorter lifespan than tile or metal. | Moderate (15-30 years) | Low - Routine inspections and occasional repairs. |
Tile | Made from clay or concrete, offering a classic, durable option. | Extremely durable, fire-resistant, excellent for hot climates. | Expensive and heavy, requires strong structural support, costly repairs. | High (50-100 years) | Low - Minimal maintenance, occasional inspections for cracks or breaks. |
Understanding how your roof affects your homeowners insurance can be complex, so it's common to have questions about it. Here are some frequently asked questions to help clarify key points about roofing and insurance.
Not all insurers offer discounts for new roofs; the amount can vary between companies. It's important to compare homeowners insurance quotes from different providers to find the best savings for your specific roof type.
Yes, the age of your roof is a significant factor in determining premiums. Older roofs are more prone to damage, leading to higher premiums, while newer roofs can qualify for discounts.
Yes, insurers generally prefer materials like tile due to their durability and fire resistance. These materials can lead to lower premiums compared to less durable options like shake-treated roofs.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
