This article on roof coverage was collaboratively written by Jeannine Giesler and Dustin Mahrt.

As insurers tighten underwriting guidelines and modify policy terms, independent agents must stay ahead of evolving roof coverage requirements. Carriers are increasingly scrutinizing the age, condition, and material of roofs, leading to shifts in policy offerings and claims processes. Understanding these changes is crucial to effectively advising clients and securing the best coverage options. 

Key Roof Coverage Options 

Independent agents must be well-versed in the two primary types of roof coverage available: 

• Replacement Cost Coverage (RCC): Pays for full roof replacement with similar materials without depreciation deductions. Many insurers now require repairs to be completed within a specific timeframe to qualify. 

• Actual Cash Value (ACV) Coverage: Covers the roof’s depreciated value at the time of loss. While this results in lower premiums, policyholders bear a greater portion of replacement costs. 

Carrier Requirements: Roof Age & Material Considerations 

Carriers increasingly factor in roof age and material when determining eligibility and coverage terms: 

• Age Restrictions: Many insurers limit coverage for roofs over 10-15 years, often offering only ACV settlements or excluding damage from certain perils like wind and hail. 

• Material Limitations: Some policies exclude specific roofing materials from matching requirements under Ohio’s roof matching law, potentially impacting claims settlements. 

Ohio’s Roof Matching Law & Claim Considerations 

Ohio law requires insurers to make reasonable efforts to match repaired roof sections with existing materials. If an exact match is unavailable, insurers may offer alternatives. However, exclusions or limitations in certain policies may affect how claims are handled. Agents should review policy language carefully and educate clients on potential gaps in coverage. 

Helping Clients Navigate Roof Damage Claims 

Independent agents play a critical role in guiding policyholders through claims processes. Key steps include: 

1. Reviewing Policy Details: Ensure clients understand age-related restrictions, exclusions, and whether they have RCC or ACV coverage. 
2. Documenting Damage: Advise clients to take detailed photos and notes immediately after damage occurs. 
3. Encouraging Prompt Reporting: Stress the importance of filing claims quickly to meet carrier deadlines. 
4. Recommending Professional Roof Inspections: Partnering with reputable contractors can provide accurate damage assessments and support claims. 
5. Exploring Additional Coverage Options: Consider endorsements like guaranteed replacement cost coverage, which protects against depreciation losses. 

Enhancements & Additional Coverages 

With stricter carrier guidelines, agents should educate clients on policy add-ons that enhance protection: 

• Inflation Guard: Adjusts coverage limits annually (typically 2-4%) to keep pace with rising construction costs. 

• Extended Replacement Cost Coverage: Provides 20-25% additional coverage beyond policy limits for unexpected rebuild costs. 

• Guaranteed Replacement Cost Coverage: Covers full rebuilding costs without policy limits. 

• Ordinance or Law Coverage: Helps cover costs associated with code-compliant upgrades for older homes. 

Buyback Coverage: Carrier Requirements & Client Considerations 

For clients with older roofs, some insurers offer buyback provisions to restore coverage for excluded roof damage. However, eligibility is subject to carrier-imposed requirements, including: 

• Regular Inspections & Maintenance Records: Clients may need documented proof of upkeep to qualify. 

• Higher Premiums: Additional coverage increases costs but provides peace of mind. 

• Selective Renewals: Carriers may require clients to reapply at renewal, ensuring continued eligibility based on risk assessments. 

Technology & Roof Inspections: Carrier Trends 

Carriers increasingly leverage drone technology and AI-driven tools to assess roof conditions, expedite claims, and minimize fraud risks. While this enhances accuracy and efficiency, it also means insurers may proactively flag maintenance issues, impacting policy renewals. Agents should prepare clients for this shift and encourage proactive maintenance. 

Why Carriers Do Not Automatically Renew Buyback Coverage 

Buyback coverage is not automatically renewed due to several factors: 

• Risk Reevaluation: Carriers reassess roof conditions and risk levels at each renewal. 

• Policy & Coverage Adjustments: Insurers may modify terms to align with updated underwriting criteria. 

• Cost Considerations: Clients must actively choose buyback coverage to acknowledge increased premiums. 

• Regulatory Compliance: Some jurisdictions require explicit policyholder consent for add-on coverages. 

Conclusion: Staying Ahead of Carrier Changes 

Independent agents must stay informed about evolving carrier requirements to better serve clients. By proactively reviewing policies, educating homeowners on coverage limitations, and leveraging technology-driven insights, agents can help clients navigate the shifting landscape of roof coverage. As insurers tighten underwriting and policy standards, agents who provide clarity and guidance will build stronger, long-term client relationships. 

Cited Resources 

• Ohio Insurance Agents Association 

• Independent Agent Resources 

• Investopedia.com 

About the Authors:

Jeannine Giesler, CISR, CPIA, and past President of the OIA Board of Directors, Foundation for the Advancement of Insurance Professionals, currently serves as Resource Center Advisor for the OIA. The purpose of the Resource Center is to contribute to building a comprehensive library of resource materials for our members. We pride ourselves on being the one-stop shop for all OIA members and work to solve every problem or situation you may come across.

Dustin is Company Partners Manager here at OIA & considers himself an industry “lifer” with 20 years of industry experience.  Upon graduating in 2003 from Ohio University with a finance degree, Dustin started off in sales at his best friend’s Dad’s captive agency. He has underwritten & managed territories for Buckeye Insurance Group (Piqua, OH) & has worked with carriers to recruit agents into the industry.  This is Dustin’s 2nd stint @ OIA, the 1st stint being the pre-Big “I” merger at PIA on the E&O team. In between stints, he helped State Auto’s Product team implement their digital Commercial Auto product in their 33 operating states.  He brings a passion for our industry & has achieved the API (Associate in Personal Insurance) designation from the American Institute For Chartered Property Casualty Underwriters (The Institutes).