Verisk, a global data analytics provider, has released its US Roofing Realities Trend Report, highlighting key trends and challenges in roof conditions that are affecting the insurance industry.
The report, based on Verisk’s personal property solutions, revealed how roofs have become a critical factor for residential property insurers in assessing underwriting risk.
In 2024, roof repair and replacement costs totaled nearly $31 billion, a 30% increase since 2022. Roof-related claims represented over a quarter of all residential claim value, with wind and hail as the primary drivers. These two perils accounted for more than half of residential claims and non-catastrophic wind and hail claims have risen from 17% to 25% since 2022. This trend underscores the growing impact of these risks, which are not solely tied to catastrophic events.
Insurers traditionally rely on in-person home inspections to assess roof damage. However, limited visibility from the ground can prevent inspectors from spotting damage, which impacts pricing, coverage and risk management strategies.
Verisk said it offers solutions to address these challenges. The Roof Condition Score (RCS), which is powered by Verisk’s Aerial Imagery Analytics, automates the detection of roof defects like water pooling and missing materials. This solution gives insurers more accurate, up-to-date insights on roof conditions.
Meanwhile, Verisk said its Roof Age solution helps insurers assess a roof’s age by combining data from permits, aerial imagery, real estate records, and claims.
Understanding a roof’s age and condition allows insurers to better assess risk and make informed pricing decisions. The report also highlighted roof condition trends across the U.S.
For example, homes with moderate to poor condition roofs have 60% higher loss costs compared to those in good condition. About 38% of U.S. homes have roofs in moderate to poor condition, with regional differences. The western U.S. generally has better roof conditions due to milder weather, while the eastern U.S. faces more variable weather.
"We’re using multiple data sources and innovative methods to help insurers better understand roof resiliency and manage risk," said Ryan D’Amario, vice president of property product management at Verisk.
