What are leading factors influencing roof damage and claims – continued?

By Nils Deacon, Manager, Inspections and Rating Services

As discussed in last month’s Underwriters’ Corner, roof insurance claims rose significantly in the past four years. This can be attributed to several factors.

The National Oceanographic and Atmospheric Administration – NOAA – indicated a clear increase in severe convective storm activity over the years 2021 – 2024. Statistics for 2025 are still being developed.

Findings include:

• Record or near record hail days (2023). This includes 141 days of large hail, the highest number in 20 years. claimsjournal
• Above average tornado, hail, and wind reports (2024).
• More billion-dollar storm events.
• Increased off season outbreak. NOAA

The National Insurance Crime Bureau (NICB) has noted that post‑disaster contractor fraud surges after major wind and hail events, with billions of dollars lost annually to deceptive solicitation and fraudulent repair practices.

This would include encouraging homeowners to file claims even when damage is minimal or unrelated to a recent storm. Up to 10% of catastrophe‑loss payouts, (approximately $9 billion in 2023) may be siphoned off by post‑disaster fraud schemes such as inflated scopes (artificially expanding the scope of loss), predatory solicitation, and false guarantees of insurance coverage, particularly following large‑scale hail and wind events. NICB

Fraud increases premiums industry-wide and delays recovery efforts.

Underwriters are looking at stronger roof age guidelines, peril specific hazard mapping, and fraud mitigation protocols. Documentation standards containing specific roof age proof, and verification of code applicability (determining which specific building codes and ordinances apply to repair / reconstruction) are necessary underwriting practices to reduce claims cost.

DISCLAIMER: This information reflects the interpretation of MSO, Inc. with regard to NFPA Standards and Codes and other code sources. It does not represent these codes’ official position on the items discussed.