Insurance Concerns
 

Hello Everyone,

We are looking to purchace in TV in 2024. A home was listed that is 10 years old. When I asked the sales agent about difficulty obtaining insurnace on a home with a 10 year old roof, she said it won't be an issue until the home is 14 years old. What has been your experience with a 10+ year old roof as it relates to insurability? I am not thrilled about buying a home only to be put in a situation of spending thousands of dollars right out of the gate to replace the roof. Your input is greatly apprciated!

Get estimates for replacement cost and reduce the offer by 50% of that amount.

I would talk to a couple of insurance agents and have them examine the roof and see if you can get firm quotes. Real estate agents want to sell you the house. They might not always tell you the truth.

I thought I would reach to several insurance agents and see if they can provode some guidance. Thank you!

You need to understand that, as a buyer, the sales agent represents the seller, not you. So, any information she provides is designed to facilitate the sale, not to assist you. You are asking the wrong person for information.

You need to speak to an insurance agent not only about the age of the roof but the HVAC, as well. Knowledge is power. If you are paying cash for the home, negogiate a better price due to the age of roof and HVAC. You will then have money in reserve to pay for a new roof and HVAC.

If you are getting a loan, negotiating a better price for the home will not help. You will have lower monthly payments but will have to spend approx $20,000 to replace the roof. Negotiating with the seller to replace the roof and possibly HVAC before you purchase the home is a better option.

:agree:

Insurance companies collect data from each area and know how many claims have been made. Just like roofs, HVACs are expensive to replace and many people scam the insurance company to get a new one. They state it was struck by lightning. (Many of these claims are true but some are not) A new HVAC on the home will protect the insurance company from fraud. Your rates will be lower. In Florida, we pay more for insurance because of many natural disasters AND SCAMS.

excellent point

I’m a retired insurance claims manager - I dealt with fraudulent claims on a daily basis - unfortunately there are many dishonest people who “scam” the insurance industry, and thus contribute to rate increases - no different than stores that have to pass on price increases due to shoplifting.

Shame on those that participated in the new roof scamming - we are all paying the price now for those dishonest actions.

How absurd is that? You're worried that you can't insure a roof that's only used HALF its WARRANTY! Do you worry about buying an 18 month-old car because it's used up half it's 3 year factory warranty?

Here's an idea -- what if you didn't buy FULL REPLACEMENT COST insurance? You don't expect your insurance company to buy you a new car if it gets hail damage, why would you expect a new roof for the same reason?

I know of exactly TWO insurance companies who will write you a normal, depreciated asset policy on your roof, like the one you probably have now, in whichever non-Florida state you're coming from.

Kin and State Farm.

If every other company was bright enough to do this, there would never have been a roofing insurance scam to cause this problem in the first place!

No problems getting insurance with a 10 year old roof, at 15 some insurance compaines won't insure you, some will. Insurance here isn't cheap, but that's the price we pay for living in Florida.

And litigation.

Our house was built in 09. We got insurance at a fair price. Our roof is still in great shape.
They sent an inspector out at their expense to check it out.

Believe NOTHING a sales agent says. Oral representations are meaningless. Even if not an issue says nothing about how much they will increase your premium. It will depend on the insurance company

Also consider air conditioner and water heater. Material expenses in your future if haven’t been replaced