Commercial building roofs develop structural issues over time, compromising their integrity and exposing you to costly and complicated risks. Proactive maintenance, proper documentation and strategic insurance planning can help lower risks. Discover how to address these challenges and safeguard your property.
Commercial Building Roof Structural Issues
The materials used in construction directly impact a roof’s lifespan. Common structural concerns for aging commercial roofs include:
- Deteriorated or defective materials (e.g., cracks, holes, barriers, missing or corroded shingles)
- Moss, mildew & mold growth
- Sagging, sloping or rotting areas
- Leaks, moisture accumulation & drainage issues
- Sealant & flashing failure
These conditions can cause weather-related roof collapses or large-scale damages. For example, weakened shingles are vulnerable to high winds while hail easily penetrates and destroys deteriorated or defective roofing materials. A third (34%) of property insurance claims, mostly roof-related, come from wind or hail damage. Aging roofs exposed to heavy rain or flooding are susceptible to excess moisture and widespread water damage. In hurricane-prone areas, older roofs are attributed to 50% more related property damage.
These concerns cause insurers to hesitate to offer coverage for older roofs. Underwriters use roof age with additional factors (e.g., location, maintenance schedules) to estimate a building’s ability to withstand the elements. Roof age is also utilized to calculate wind resistance and structural integrity.
Wondering about the condition of your entire building? Get our Commercial Property & Building Inspection Checklist now.
Commercial Building Roof Coverage Complications
Insurers often restrict coverage for roofs over 20 years old, with some even excluding them entirely. Building owners must provide accurate information about their roof's age to ensure proper risk evaluation and premium determination.
Incorrect roof age data poses a significant issue in the insurance industry, leading to $1.3 billion in premium leakage annually. Providing false roof age information may initially lower insurance costs, but it ultimately strains the owner-insurer relationship. If property damage occurs and the deception is revealed, claims will be denied, and the building owner’s premiums will be adjusted. This may lead to increased rates or coverage restrictions.
Accurate roof age information can present challenges despite lower premiums. Repairs under an ACV policy use modern construction techniques and materials, with owners bearing the cost difference from the property’s depreciated value. Additionally, owners must ensure that replaced or repaired roofs meet current building codes. Not all insurers cover building code upgrades, which could mean additional expenses for owners.
Not sure what coverage is right for your business? Review Commercial Market Property Value & Replacement Cost Explained to learn more.
Structural damage can lead to operational disruptions and financial losses for your business. Implement these top strategies to minimize aging roof exposures:
Conduct Regular Maintenance & Repairs
Routine care can prolong the lifespan of older roofs and preserve their structural integrity by:
- Scheduling biannual inspections (spring, fall)
- Cleaning to prevent moss, mildew & mold
- Removing excess debris (e.g., fallen branches, leaves, dirt, sticks)
- Maintaining effective drainage systems
- Making minor repairs (e.g., patching holes, sealing cracks) when necessary
- Incorporating periodic building code upgrades
- Utilizing drones to inspect inaccessible areas
- Opting for infrared scans to detect underlying issues
Provide Accurate Documentation
Maintaining accurate property records is essential for accurate underwriter calculations and preventing inconsistencies. Essential documents include:
- Inspection reports
- Maintenance schedules
- Repair history
- Warranty information
- Replacement cost estimates
- Photos & videos of the condition
Ensure Proper Insurance Coverage
An insurance advisor with expertise in commercial property protection can customize policies to meet your unique needs. Their assistance can include:
- Advising property owners with older roofs of the advantages of replacement cost value (RCV) coverage over actual cash value (ACV) coverage
- Offering business interruption insurance to protect against revenue loss during repairs
- Providing risk prevention support, including roof inspections, safety initiatives and innovative options (e.g., drones, infrared scans)
We’re Here to Help Protect Commercial Property Owners
Ensuring the structural integrity of your aging commercial building roofs is crucial to managing risks and maintaining proper insurance coverage. Neglecting these issues exposes your property to damage and insurance limitations, putting you at odds with insurers. Connect with a member of our team to learn how to protect your investments and insure older roofs effectively.