Government programs across the United States are paying homeowners to put new roofs on their homes. It may seem crazy, but it’s an attempt to reduce damage and insurance claims from strong storms, tornados, wildfires and hurricanes across the country.
Higher Insurance Rates Mean Fewer Insured Homeowners
Especially in storm prone areas, insurance premiums have skyrocketed as hurricanes, tornadoes, winter storms, and thunderstorms have gotten stronger. These stronger storms mean more damaged homes, which means insurance companies have to pay out for more repairs. To keep from going under (and to keep their investors happy) insurance companies have increased premiums in areas where storms have intensified over the past decades. Where the insurance premiums have increased by 100% or more, more homeowners have had to choose to move forward without insurance coverage, or with insufficient insurance coverage. Then, when major storms or other disasters come through, and their homes are damaged, the homeowners are left having to rely on state or federal relief in order to rebuild.
Over the past decade, many states realized that it would be more cost-effective to help homeowners protect their homes than to deal with the cost of repairing and rebuilding for homeowners with insufficient insurance. They started issuing grants to homeowners in disaster prone areas, allowing them to use government funds to install “fortified roofs” that are specially built to withstand hail and heavy winds. As a result, these states have seen a reduction in the number of post-storm disaster claims. People are able to rebuild and get back into their homes more quickly, more safely, and with less expense.
Do the Grant Programs Work?
It looks like yes, they do. In states which have created programs that pay for or significantly subsidize roof replacements or other home improvements specifically targeted to helping homes survive storm damage, there have been positive results. Fewer homeowners have made claims with state or federal disaster programs. And these fortified homes are helping to reduce the liability of insurance companies in these areas, therefore helping to lower insurance premiums across disaster prone areas. For example, in North Carolina, homeowners whose homes have fortified roofs were 35% less likely to file insurance claims after a hurricane than other homeowners in the same areas. In addition, these home improvements give homeowners greater peace of mind and help them to know that they’re as prepared as possible if the worst should happen.
Are These Programs Available in My State?
In states where these funding programs exist, they are wildly popular and tend to get snapped up very quickly. The most widespread programs have been implemented in Alabama, Louisiana, Mississippi, Oklahoma, Kentucky, Minnesota, South Carolina and North Carolina. Newly proposed programs will be getting started (or hopefully getting started) in Idaho and California, as well, as insurance companies raise rates in these areas due to increase risks to homes from wildfires.
In all of these areas, insurance companies are likely to refuse to insure homes most at risk of disaster damage, or charge such high premiums that most homeowners cannot afford them. Helping homeowners to fortify their homes against hail, high winds, water, and fire damage encourages insurance companies to continue to insure homes in these areas, and reduces the risk of loss to homeowners and insurance companies alike. This reduced risk also lowers the burden on state and federal disaster relief programs, so not only is it good practice to help homeowners protect their homes, it also makes good financial sense in the long term.
Here in Ohio, we aren’t (yet) subject to any state programs that help us to fortify our homes against strong storms, and luckily we don’t live in a hurricane or wildfire prone area. But if you’re interested in protecting your home against the strong storms we can get in our area, or if you’re interested in learning more about how you can reduce your own insurance premiums through fortifying your own home, we’d be happy to advise you!