Selling a house with an old roof: insurance, the buyer's loan and your choices

Why an old roof can stop a sale

A buyer who pays with a mortgage needs insurance. The Consumer Financial Protection Bureau says lenders generally require proof of homeowners insurance. So the buyer has to find an insurer willing to cover the house, and in Florida the law lets an insurer weigh the roof's age, within the limits below.

If no insurer will write a policy, or only at a price the buyer cannot carry, the loan cannot close. The buyer may walk away, ask you for a new roof, or ask for a lower price. This guide explains the rules in Florida, where roof age is written into the insurance law, and what to do in Arizona. It gives no insurance or legal advice.

Florida's roof-age rule for insurers

Florida Statutes section 627.7011(5) sets limits on how an insurer can treat an older roof on a home policy. Under paragraph (b), an insurer may not refuse to issue or refuse to renew a policy solely because of the age of the roof, when the roof is less than 15 years old.

Under paragraph (c), for a roof 15 years or older, the insurer must allow the homeowner to have the roof inspected by an authorized inspector, at the homeowner's expense, before it requires a new roof. If the inspection finds the roof has 5 years or more of useful life left, the insurer may not refuse to issue or renew the policy solely because of the roof's age. Other reasons, such as damage or leaks, can still matter.

Find the roof's age and condition

Before you talk price, find out what the roof is. The year it was installed is on the roofing permit, which the city or county building office keeps. Look for receipts and warranty papers in your files. A roofer or a home inspector can tell you the material, the condition, any leaks, and how long it has left.

Write down every leak you know about, every repair, and every insurance claim on the roof. A buyer's inspector can find stains on ceilings and patches on the roof, so let the buyer hear about them from you first.

• The roofing permit and its final inspection date
• The roofer's invoice and any warranty
• Past insurance claims on the roof, paid or denied
• Any wind mitigation or roof inspection report
• Photos of the roof and the attic

Florida's 25 percent rule for roof repairs

A small repair can turn into a full roof because of Florida Statutes section 553.844(5). When 25 percent or more of a roofing system or roof section is repaired, replaced or recovered, the work can require that whole system or section to meet the code in effect at the time.

There is an exception. If the roof was built, repaired or replaced in compliance with the 2007 Florida Building Code or a later edition, only the part being worked on must meet the current code. Ask your roofer which side of that line your roof is on before you agree to any repair, because the answer changes the price.

Discounts for a stronger roof in Florida

Florida Statutes section 627.0629(1) requires home insurance rate filings to include discounts, credits or other rate differences for features that reduce wind losses, such as roof strength and wind uplift prevention. A wind mitigation report shows those features to the insurer.

For a seller, an existing report can help a buyer price insurance. If the roof is old but well attached, the report may show it. Give the buyer any report you already have.

If a storm damaged the roof

An old roof and a storm-damaged roof are two different problems for an insurer. If a storm caused the damage, report a claim before you sell. In Florida, section 627.70132 says notice of a new or reopened claim is due within 1 year after the date of loss, and a supplemental claim within 18 months. Tell the buyer about the claim, and agree in writing who keeps the claim money.

Selling a storm-damaged house with an open claim →

How a cash buyer prices the roof

A cash buyer takes the roof as it is and replaces it after closing, so the cost of the new roof comes off the price. At BIMINIO the repair budget comes from a scope of the work led by a trained architect, and a person checks every number before you see it. The written offer lists the comparable sales we used, so you can see where the value starts before the repairs come off.

If you have a roofer's quote, send it with your request. It gives both sides the same number to talk about.

How a cash offer is worked out →

Your choices as a seller

Each choice moves the cost of the roof to a different person and a different date. Work out the numbers for each before you list.

Arizona roofs

Florida's roof-age rule in section 627.7011(5) applies to Florida policies. For an Arizona house, ask the buyer's insurer early what it needs for an older roof: the roof's age, a report, or a repair. A buyer's lender will still generally want proof of insurance before it lends.

Give the buyer the same papers as a Florida seller would: the permit, the invoice, the warranty and any claim history.

Telling the buyer about the roof

Tell the buyer the roof's age, every leak you know about, every repair and every claim. In Florida, Johnson v. Davis (1985) held that a seller must disclose known facts that materially affect the value of a home and that the buyer cannot easily see. In Arizona, tell the buyer what you know as well. The guide on selling as is covers disclosure in both states.

Selling as is: what to tell the buyer →

Selling a house with an old roof to BIMINIO

BIMINIO buys houses with old or leaking roofs in Tampa, Miami, Orlando, Lakeland, Phoenix and Glendale, as is. We pay cash, so no lender and no insurer has to approve the roof before closing. The cost of the new roof is part of the repair budget behind the offer. You get a written cash offer within 24 hours, with the comparable sales we used, and you pick a closing date from 7 to 35 days out. We pay the closing costs. A cash offer is below full market value.

Old roof in Florida: can the buyer get insurance? →