How does an aging roof effect your insurance?

Posted by Farrell Agencies on January 10, 2018

Is your roof getting up there in age?

Starting in 2018, SGI CANADA will apply depreciation – the loss in value due to wear and tear – to roofs that are 16 years or older if you put in a claim for hail or wind damage. That means a certain percentage will be subtracted from your insurance payout for the cost of a roof repair or replacement on your home, garage, shed or other buildings on your property.

If you have Prestige coverage, this change does not affect you unless you live on a farm. Then, it will apply to all detached garages, quonsets, workshops or any other farm buildings on your policy.

Depreciation only applies to:

  • roofs that are 16 years or older; and
  • roofs that are damaged by wind or hail

For example…
You have a 20-year-old roof with wood shakes. We’ll pay to have your roof repaired or replaced, minus 20% depreciation (4% depreciation per year x 5 years).     

Contact your insurance broker – they can help explain your coverage.

Hail and wind damage is becoming more common and costly in Saskatchewan.

To ensure the longevity of our home and farm products, SGI is making changes to roof coverage that reflect the reality of severe, recurring weather in our province.

Effective January 1, 2018 renewals, they will depreciate roof replacement cost when settling any claims resulting from a windstorm or hail on roofs aged 16 years or older. This includes roofs on dwellings and outbuildings on all Home and Agro Paks, as well as farm buildings on Agro Paks. It also applies to any Mobile Home, Seasonal or GDP policies that have replacement cost coverage. Coverage for Prestige customers will remain unchanged.

They value the investment homeowners have made in weather-resistant roof materials with a longer lifespan, so they’ve determined lower depreciation rates for those materials.

Insurance companies change coverage rules all the time. That is why it’s critical your insurance broker has choices and explains those choices to you do you end up with an insurance policy that’s best for your situation.

Please contact us if you have any questions or concerns! Farrell Agencies also offers alternative suppliers to SGI.

Home Insurance

Our Brokerage is licensed to insure your home in Saskatchewan, British Columbia, Manitoba or Alberta. Your home is your greatest investment. Protect your home inside and out with a homeowners policy from Farrell Agencies. We provide insurance for your home, mobile home, condo or tenant.

Coverage can also be added for the following dwellings:

  Under Construction

 We provide discounts on home policies if any of these apply:

  Age of client
  Claims Free
  Mortgage Free Home
  Security System
  New Home

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