Why do so many Minnesota homeowners get free roofs after a hailstorm?
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As soon as summer hail storms pass, roofing contractors arrive in
He has watched them go door-to-door offering free inspections, sometimes resulting in a new roof or siding covered by insurance. After a hailstorm a couple years ago, Neu's insurance company paid to replace his aluminum siding and asphalt roof. The same company had covered his home's last roof replacement a decade prior.
He was shocked.
"We weren't even thinking of getting the roof replaced," said Neu, 58. "Every house in our neighborhood has had its siding and roof replaced, fully covered."
After living in
"We pay for it one way or other," he added.
It doesn't appear that
Storms may have damaged lots of roofs lately, but the fully covered roof replacements Neu experienced are growing less common.
With more frequent extreme weather across the country, some insurance companies are no longer paying full replacement costs for roofs that were installed 10 or 15 years ago. Instead, they're paying the depreciated, actual cost of the roof instead of the replacement cost — or requiring a higher deductible to shift costs to homeowners, among other changes.
"Everybody thinks that when a storm comes, they're just going to have a brand new roof," said
2022 was the costliest storm year on record for
"That quickly adds up," Commerce Commissioner
While
That's been particularly true lately.
But
The amount homeowners are seeking in claims could also be going up because it's getting pricier to replace roofs and siding due to rising labor and supply costs.
The state has roughly 20% fewer roofers than it did several years ago, based on state data. And the average hail claim has almost doubled in the last decade to nearly
These costlier, more frequent replacements have contributed to higher premiums for insurance. In 2021, the average premium
Cocking said insurers have also taken a hit. Insurers paid out
"Something's got to change," Cocking said, adding that insurers scaling back their coverage is in the interest of "looking out for all the policyholders who are paying higher premiums."
Insurers have added new exclusions to narrow coverage or boosted the amount of deductibles that homeowners have to pay on wind and hail damage claims, leaving more Minnesotans on the hook to pay possibly tens of thousands of dollars.
"This hollowing out of coverage by the insurance agencies is something we're seeing more and more nationwide," said
Some consumers aren't happy about it. Last year, the state
The
For homeowners who can't afford the costly bill to replace their roof,
Arnold recommended that homeowners review their policy and ask their insurance agent what is not covered, to understand the limitations. Check what's changed in the policy before renewing it, and shop around to get multiple quotes.
"I think it's tempting to just purchase your insurance and pay it every year," Arnold said. "As premiums are increasing ... You can make smart choices about what you want covered and where you may be able to take on some risk by yourself."
To avoid scam businesses, homeowners should check a contractor's ratings and go to dli.mn.gov to see if the contractor is licensed by the state — or has a disciplinary record. State law also allows homeowners to cancel a roofing contract, with certain restrictions, if their insurance denies the claim.
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