Verisk report reveals challenges and trends in roof repair and replacement costs based on peril exposure, shape and building materials
JERSEY CITY, N.J., April 08, 2025 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, today released its U.S. Roofing Realities Trend Report, which identifies trends and challenges in roof conditions. These are supported by insights from Verisk’s personal property solutions, which are used by many of the top P&C insurance carriers to gain a granular understanding of roof risk— which is among the costliest claim.
In recent years, roofs have become one of the most critical structural components for residential property insurers assessing underwriting risk. As the insurance industry looks to enhance accuracy and promote fair premiums for insurers and policyholders, the following challenges persist:
Peril severity and outdated practices are driving up costs
In 2024, roof repair and replacement cost value totaled nearly $31 billion, up nearly 30 percent since 2022.
Roof related line items made up more than a quarter of all residential claim value in 2024. Wind and hail were the predominant drivers of these loss costs, accounting for more than half of all residential claims. Since 2022, non-catastrophic wind/hail roof claims increased from 17 percent to 25 percent, highlighting the growing impact of this peril despite the greater focus often placed on catastrophic events.
Solely relying on practices such as in-person home inspections can limit an insurer’s ability to effectively assess risk. Limited roof visibility from the ground level can cause inspectors to miss signs of damage. This can also inhibit insurers from adopting more up-to-date pricing, coverage and risk management strategies.
How can insurers navigate these challenges?
To help insurers navigate these challenges, Verisk’s personal property solutions offer reliable insights that can help insurers verify a roof's age, condition and characteristics. Verisk’s Roof Condition Score (RCS), which is drawn from Verisk’s Aerial Imagery Analytics solution, automates the detection of visible roof defects such as water pooling, missing materials, tarps and structural damage.
Verisk’s Roof Age® solution helps insurers assess the age of a structure’s roof by combining multiple data sources including permit insights, aerial imagery, assessor records, real estate data and claims.
Together, these solutions offer unparalleled insights and enable insurers to enhance underwriting accuracy, make informed pricing decisions and proactively manage risk. From these insights, Verisk has identified the following roof condition trends across the U.S.:
Peril exposures persist and vary regionally
Roofs with moderate to poor condition issues have 60 percent higher lost costs than those in good or excellent condition.
Currently, 38 percent of U.S. residential homes have roofs with moderate to poor condition issues via Verisk’s Aerial Imagery Analytics solution. However, roofs tend to be in better condition in the western region of the U.S. vs. the eastern part of the country where they are exposed to more weather variability.
Shape, size and materials can impact a roof’s life and resiliency
Roofing materials can play a key role in roof life and durability. For example, asphalt shingles are used on 80 percent of roofs in the U.S. In hail-prone states, average roof lifespan is 15 years, compared to 22 years in western states with less severe weather like Nevada, Arizona and Utah.
Around 29 percent of U.S. homes with asphalt shingles have less than four years of remaining useful roof life according to insights from Roof Age®. States such as West Virginia, Connecticut, New Jersey and Massachusetts have the highest percentage of roofs with less than four years of remaining roof life, which in turn can result in 50 percent more damage during severe weather, compared to roofs with 8+ years of remaining life.
Roof shape affects weather resilience; 20 percent of U.S. homes have hip-styled roofs which are more resistant to wind damage. Florida and Louisiana have the highest percentage of such roofs.
“We’re combining multiple sources of data using innovative methods to help insurers gain a greater understanding of roof resiliency and property-specific peril risk,” said Ryan D’Amario, vice president, property product management, at Verisk. “Verisk’s personal property solutions augmented with aerial imagery analytics can help insurers confidently manage challenging wind and hail loss costs, while unlocking opportunities to educate their policyholders about proactive measures that can help prevent future claims.”
About Verisk Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.
CONTACT: Morgan Hurley Verisk 551-655-7858 morgan.hurley@verisk.com
