Article By: Kevin Stone
In recent times, there has been an increasing number of complaints against major insurance carriers, such as State Farm, regarding the non-renewal or cancellation of policies based on the type of shingles used on clients’ roofs. This issue has raised concerns about the fairness of insurance practices, particularly when homeowners face policy termination despite having roofs in good condition.
Understanding the Issue:
Homeowners have reported cancellations of their insurance policies due to the age or type of their roofing material. Even when the roofs are well-maintained and undamaged, insurance companies have refused to renew policies, primarily focusing on roofs with 3-tab shingles. These shingles, though commonly used, are now perceived by insurers as less durable compared to other options like architectural or impact-resistant shingles.
Why Are Insurers Taking This Stance?
Insurance companies argue that 3-tab shingles pose a higher risk due to their lower durability. This stance comes from increasing concerns about the potential for damage during adverse weather conditions, which in turn could lead to more frequent and costly claims. The Better Business Bureau and industry analysts at Insurify and MoneyGeek.com have highlighted this growing trend, indicating a shift in the industry’s approach to risk management (Insurify) (Insurify) (Insurify).
Impact on Homeowners:
The impact on homeowners is significant. Being dropped from an insurance policy can lead to financial strain and difficulty in finding new coverage. Moreover, it forces many to undertake expensive roofing upgrades or replacements to comply with insurers’ requirements, even when their current roofs are in good shape.
What Can Homeowners Do?
- Review Your Policy: Regularly review your insurance policy and understand the terms related to roofing materials and conditions.
- Roof Maintenance: Keep your roof well-maintained and document all repairs and inspections.
- Upgrade When Necessary: Consider upgrading to more durable roofing materials if your insurer expresses concerns.
- Shop Around: If dropped, shop around for other insurance providers who may have more lenient policies regarding roofing materials.
- Hire an Insurance Claims Specialist: Before your policy is canceled, it is best to hire an insurance claims specialist in your area to assess your situation, provide guidance, and assist in communications with your insurer to potentially prevent policy termination
Conclusion:
The move by insurance companies to drop clients based on roofing materials, especially 3-tab shingles, highlights the evolving nature of risk assessment in the insurance industry. Homeowners need to stay informed and proactive in maintaining their roofs and understanding their insurance policies to avoid unexpected cancellations.
Sources
- Insurify on Roof Insurance Cancellations (Insurify) (Insurify)
- MoneyGeek on Homeowners Insurance with a Bad Roof (MoneyGeek.com)
- MoneyGeek on Preventing Homeowners Insurance Cancellation (MoneyGeek.com)
These sources provide detailed insights and examples of how homeowners are affected by insurance companies’ policies on roofing materials, especially 3-tab shingles.
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