California's largest home insurers are using underwriting standards that can restrict coverage for homes with flat roofs, aging structures and certain roofing materials, according to a review of regulatory filings from carriers that accounted for 90% of the state's homeowners’ insurance premiums in 2024.
The filings provide insight into how insurers evaluate roof-related risks while aerial imagery and other remote inspection tools are increasingly being used to assess property conditions.
The findings stem from an analysis of underwriting guidelines filed by the 20 largest homeowners’ insurers in California. Those documents outline the types of properties insurers will and will not cover and offer a view into eligibility standards that can affect both new and existing policyholders.
The review found that roof characteristics remain an important factor in homeowners’ insurance underwriting. Among the most common restrictions are limitations on wood roofs, roofs that have exceeded their expected lifespan and flat roofs that lack sufficient drainage systems. Some insurers also restrict roofs with more than two layers of shingles, while others limit coverage for roofs made from certain materials or unconventional designs.
Wood shake and wood shingle roofs face some of the strictest requirements. Many major insurers consider them ineligible because of their fire risk, while some carriers apply those restrictions only in areas with elevated wildfire exposure.
The criteria vary by insurer. The Chronicle reported that Mercury Insurance and Wawanesa Insurance generally do not insure homes with roofs older than 25 years, subject to exceptions for tile and slate roofs. Farmers Insurance Group's guidelines indicate that asphalt roofs older than 15 years may qualify only for actual cash value coverage rather than replacement-cost protection.
Roof life expectancy can vary significantly by material, ranging from about 10 years to more than 150 years. That variation helps explain why roof-age requirements differ among insurers.
Flat roofs have drawn particular attention. While relatively few insurers impose outright prohibitions, many require a minimum slope to facilitate drainage and reduce the potential for water accumulation and leaks. The Chronicle cited Lemonade filings showing that one of the insurer's underwriting entities does not cover homes with flat roofs.
Industry observers said more frequent storms and advances in aerial imaging have increased scrutiny of roof conditions. Insurers now have access to satellite imagery, aircraft photography and other remote inspection methods that can identify property features without an on-site visit.
The increased use of remote inspections has prompted concerns from some homeowners and consumer advocates. Some homeowners have been dropped after insurers used images captured by satellites or aircraft to evaluate roofs, with some policyholders alleging that the images were misinterpreted. A bill currently moving through the California Legislature would regulate the practice.
A California homeowner received a notice requiring roof replacement following a remote assessment. The insurer later renewed the policy after the homeowner challenged the finding. The case reflects the use of remote assessment tools in policy renewal reviews and follows concerns from some homeowners about how those assessments are conducted.
Roof age is also a factor within the California FAIR Plan.
The FAIR Plan will not provide full replacement-cost coverage for homes more than 25 years old unless the roof has been replaced within that same period. Properties that do not meet the requirement are eligible only for actual cash value coverage, which is based on the depreciated value of the home rather than the cost of fully replacing it.
The FAIR Plan's approach aligns with underwriting practices, where roof condition may affect both eligibility and coverage terms.
The focus on roofs is occurring against a backdrop of weather-related losses across the insurance sector. Industry sources have linked heightened roof scrutiny to an increase in storm- and hail-related claims nationwide. Roof age, condition and construction materials can influence a property's susceptibility to weather-related damage, making them important considerations in underwriting reviews.
Recent reporting by NPR found that severe storms generated $51 billion in insured losses last year. The report also cited Insurance Information Institute data showing that hail typically accounts for up to 80% of severe-storm claims annually. NPR further noted rising nonrenewal rates in several states and growing concerns about insurance availability.
For California homeowners, the filings indicate that roof design, materials, age and maintenance condition remain central underwriting considerations. For insurers, the documents provide a view into how carriers assess property-level risks and determine coverage eligibility across a market that represents the vast majority of homeowners’ insurance premiums written in the state.
