Rising Roof Claims Challenge Insurers Amid Severe Weather and Roofing Scams

The insurance industry faces escalating challenges from a surge in roof-related claims. Severe weather events, including hailstorms and derechos, have become more frequent and intense, with total damages from convective storms nearly doubling from $29 billion in 2022 to $57 billion in 2023. This uptick, compounded by inflation in repair costs and a rise in roofing scams, has strained insurer portfolios and impacted policyholders.

Roofing scams, in particular, are exacerbating the problem. Contractors often encourage unnecessary or fraudulent claims, leading to coverage non-renewals or stricter policy conditions for affected homeowners, including those in high-value properties. Luxury homes with large roofs and aging asphalt shingles are especially vulnerable to rising repair costs and claims disputes.

Insurers are responding by adopting stricter underwriting practices, with many policies now factoring in roof age and condition. Technological tools such as drones and satellite imagery enable remote roof assessments, which can determine renewal eligibility. In some cases, properties with older or poorly maintained roofs face non-renewal or coverage reductions unless upgrades are made.

Agents and brokers serving high-net-worth clients must emphasize the importance of proactive roof maintenance and investment in durable materials like Class 4 hail-resistant roofs. Educating clients on these strategies can mitigate risks, reduce premiums, and maintain access to comprehensive coverage amid this challenging claims environment.