Insurance Carriers Experience Increased Roofing Claims from Wind & Hail
Convective storms and other severe weather events, specifically those involving wind and hail, are changing the entire landscape of the insurance industry for both carriers and homeowners. Faced with claims steadily growing in number, carriers are moving toward a shared risk approach through roofing schedules. Due to the frequency of these events and the financial burdens that accompany them, homeowners are beginning to choose roof repairs and slope replacement rather than full roof replacement.
In an article for Insurance Journal, Stephen Poux and Diane Delaney reported State Farm recently faced hail claim costs that rose by over one billion dollars—the consequence of the company receiving about 45,000 more claims than is typical. Reviewing the industry as a whole, we learn State Farm’s experience is not an anomaly; other carriers have reported similar rises in claims, which are the outcome of unpredictable weather and the growing prominence of roofing scams. Nationwide also discussed this trend in a June 2024 blog post, writing that in 2023 alone, the United States faced losses that equaled approximately $93.1 billion.
On top of increasing claims and payouts, insurance carriers and homeowners alike are facing more and more roofing scams, wherein a contractor will convince a homeowner they need to complete unnecessary roof repairs, often by deceptive methods. In an attempt to identify these ploys at the start, the National Insurance Crime Bureau (NICB) explained scammers often ask for full payments upfront and deceive homeowners by claiming the roof damage is more severe than it actually is. Homeowners must take on the task of vetting these contractors and making sure their roofers possess the necessary qualifications for the job—and aren’t trying to pull a fast one. In fact, Alan Haskins, Vice President of Government Affairs for the NICB, stated educating oneself is the best way to mitigate risks associated with fraudulent roofing contractors. Doing so can prevent further damage, thus benefiting homeowners and insurance carriers alike. However, in the event a claim is filed, HOMEE is here to help.
HOMEE’s cutting-edge AI technology was designed to help insurance companies stay ahead of property claims by saving them time and money. With the nation’s leading network of GAF Master Elite® roofers, HOMEE reduces cycle time and offers policyholders unparalleled customer service and a vetted portfolio of contractors and carriers they can trust.
To learn more about roof damage caused by wind and hail and how other insurance companies are responding to it, read the full article from Insurance Journal. To learn more about how HOMEE will help you through a storm, get in touch with us today at claims@homee.com or give us a call at (855) 964-6633.