The classic, oh so mellow, tune of the same name recorded by the Drifters (in 1964, and yes, I remember when it hit the charts, and yes, you can do the math if you wish), was a love song to the peace and solace available when sitting on the roof on a warm night and gazing at the sky, far above the noise and hassle of the daily urban grind. A wonderful song, and a big hit.
That was then. This is different.
The condition of your roof is becoming an inspection flashpoint, an insurance problem, and a possible roadblock to closing – something both buyers and sellers need to aware of.
It all starts with insurability. Climate change is causing all sorts of weather issues these days. In our part of the world, it’s tornadoes and hail. We’ve had a lot of both in the past decade and the vulnerability of roofs is making them difficult and/or expensive to insure. If this is news to you, you are not alone. It was news to me, and the situation isn’t going away. Eventually it’s going to affect pretty much everyone.
Read on …
Late last year, I helped a client couple get into a deal on a house that seemed perfect for them and their family. As it turns out they are happy with their house, but there was a big bump in the road.
While they were under contract, their insurance agent emailed and said that an inspector was going to have a look at the house before they would agree to insure the property. I hadn’t heard of this before, so I called my insurance agent and she told me two things: 1. Get used to it. This is becoming the new normal. And 2. It’s all about the roof.
As it turns out, even though the roof was sound and not leaking, my clients had to replace it, or they could not get insurance, and therefore would not have been able to close. The inspector did a drive-by, saw that the roof was three-tab shingles, not dimensional shingles,* and declined to cover the house. Boom! He didn’t even get out of the car.
My clients were aware that the roof was getting old and would need to be replaced sooner rather than later, but they weren’t planning to deal with it right away. An unpleasant surprise!
So, what did we learn?
One: It’s about the roof Changing weather has made roofing riskier for underwriters, and therefore more difficult for owners, to insure. This is not going to get better.
Two: It’s about the cost of insurance Homeowners insurance, when you can secure it, is getting more expensive because of these factors. This is not going to get better, either.
Three: Forewarned is forearmed Buyers need to go into a deal ready to take a hard look at the roof during inspection, and have a clear idea of how much homeowners’ insurance will cost. It’s possible that insurance expense could move a monthly payment beyond what a buyer can afford.
Sellers need to know that buyers will be taking a hard look at the roof, and may demand compensation for repairs or replacement in order to close the deal.
*A word about shingles: Three-tab shingles lie flat on the roof slope and do not appear textured. Dimensional shingles – also called architectural shingles – at more typical these days. They have a textured appearance.