From The Allison Ziefert Real Estate Group:
If you’re buying or selling a home right now, there’s a growing issue that’s quietly derailing deals: homeowners insurance—specifically, roof condition.
We’re seeing more insurance carriers either decline coverage upfront for homes with older roofs or bind a policy and then inspect after the fact, only to require repairs—or even full replacement—within a short window to keep the policy active.
This is no longer a fringe issue. It’s becoming a critical part of the transaction strategy.
What Insurance Companies Are Looking For
Insurance carriers are getting increasingly strict about roof condition, and their inspections are detailed. One recent underwriting guideline flagged the following as unacceptable:
- Poor overall roof condition
- Curling, worn, or missing shingles
- Brittle or shrunken shingles with little to no surface granules
- Moss or plant growth on the roof or in gutters
Even if a roof is not actively leaking, that does not mean it will pass an insurance inspection.
The New Reality: Coverage Isn’t Guaranteed
Here’s what we’re seeing happen in real time:
- Policies denied outright due to roof age or condition
- Policies issued, then flagged after inspection, requiring repairs within 30–60 days
- Coverage exclusions, especially for roofs (meaning damage may not be covered)
- Significantly higher premiums for homes with older roofs
Some insurers are also introducing depreciation schedules, where the value of roof coverage declines as the roof ages—leaving homeowners with far less protection than expected.
Why This Matters for Sellers
For sellers, this is no longer something to leave for the buyer to “figure out later.”
If your roof is older or showing wear, it can:
- Limit the buyer pool (some buyers won’t be able to secure coverage)
- Delay or derail closing if insurance issues come up late
- Trigger renegotiations or credits
- Create a poor first impression during inspections
Strategic takeaway:
If there’s any question about roof condition, it’s worth evaluating repair or replacement before listing. In many cases, this is the difference between a smooth, competitive sale and a complicated one.
What Buyers Need to Watch For
Buyers need to be especially careful right now. Just because you can get a policy initially does not mean you’re in the clear.
You could:
- Close on the home
- Receive a post-binding inspection notice
- Be required to replace the roof within weeks—or risk policy cancellation
That’s a major unexpected expense—and one that’s becoming more common.
Smart buyer strategy:
- Ask about roof age and condition upfront
- Factor potential replacement into your budget
- Work with an agent who can flag risk before you go under contract
- Consider having your insurance lined up early in the process, not at the last minute
- Speak with a knowledgeable insurance carrier early—this is becoming a critical piece of due diligence for both buyers and sellers
The Bigger Picture
Insurance companies are tightening standards due to rising claim costs, climate risk, and aging housing stock. Roofs are one of the highest-risk components of a home—and insurers are responding accordingly.
The key shift is this:
👉 A roof that is “functionally fine” is no longer enough. It has to meet insurer standards.
Bottom Line
This is one of those behind-the-scenes factors that can have a very real impact on your bottom line.
- For sellers: Preparation matters more than ever
- For buyers: Due diligence now needs to include insurance risk
The homes that win in this market are the ones that are not just well-priced and well-marketed, but also insurable without issue.
Thinking About Buying or Selling?
Keeping updated on your “portfolio” is always a good idea.Â
Here is our latest market report for South Orange:
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If you’re navigating a purchase or preparing to list, this is something we’re actively helping our clients plan around every day. We’re happy to connect you with trusted insurance professionals and walk you through how this could impact your specific situation.
Reach out anytime at [email protected]—we’re here to help you stay ahead of it.
