Why Does Insurance Pay For Roof Replacements? What Homeowners Owners Need to Know

Summary

In this video, Adam Benzeman, the Roof Strategist, addresses homeowner hesitancy in using insurance for roof damage. He emphasizes the importance of educating property owners about the high cost of roof maintenance and the potential for reduced lifespan due to damage. Benzeman advocates for a patient, caring sales approach that informs customers, helping them make confident decisions about insurance claims. He uses analogies, such as comparing a roof's service life to a vehicle's, to illustrate the financial implications of not addressing roof damage, encouraging homeowners to view insurance as a service protecting their investment.

Takeaways

• 🏠 Homeowners may resist using insurance due to fear of making a claim, which can lead to missed opportunities for necessary repairs.
• 💬 Effective communication and education are crucial to help property owners make informed decisions about their roof repairs.
• 🔑 Adam Benzeman, the 'Roof Strategist', emphasizes a sales style that educates rather than aggressively pushing homeowners to file claims.
• 📈 Roofs are the most expensive maintenance item on a house and have a service life that can be compromised by damage, necessitating replacement sooner than expected.
• ⚠️ Damage to a roof can void the manufacturer's warranty, further emphasizing the importance of addressing roof damage promptly.
• 💰 Insurance covers roof replacements to protect the homeowner's financial interests and to prevent more expensive problems from arising later.
• 📊 The cost of roofing materials is increasing at a rate higher than historical stock market performance, making it more costly to replace a roof over time.
• 🚗 Using analogies like a vehicle's service life can help homeowners understand the implications of not addressing roof damage and the potential costs involved.
• 🏢 Insurance companies are interested in preventing future damage to the home, which can become significantly more expensive and complicated to repair.
• 📝 Filing a claim for roof damage is not only about immediate repair costs but also about protecting the homeowner's investment and potential future savings.
• 📚 Adam offers a free 'Pitch Like a Pro' roofing sales training video library as a resource for further education on sales techniques and strategies.

Q & A

Why might homeowners be reluctant to file a claim on their insurance for roof damage?

Homeowners might be reluctant due to fear of the claim process, not recognizing the significance of minor damage, or a misconception that the roof is still in good condition despite potential issues.

What is the speaker's name and what is his role?

The speaker's name is Adam Benzeman, and he is the 'Roof Strategist', who provides sales training and strategies for the roofing industry.

What is the main purpose of the speaker's sales approach?

The main purpose of his sales approach is to educate property owners about the importance of addressing roof damage, leading them to make informed decisions rather than using aggressive sales tactics.

What are the three main reasons insurance companies cover roof replacements?

The three main reasons are: 1) The roof is the most expensive maintenance item on a house, 2) The lifespan of the roof is shortened by damage, and 3) There is a need to prevent future problems from arising.

How does the lifespan of a roof get compromised by damage?

The lifespan is compromised because damage from hail or wind can void the manufacturer's warranty and lead to a shortened lifespan due to exposure to elements like UV rays, which can cause the shingles to deteriorate or dry rot.

What financial implications does a shortened roof lifespan have for a homeowner?

A shortened roof lifespan means the homeowner may have to replace the roof sooner than expected, incurring additional out-of-pocket costs that they had not planned for when initially purchasing the roof.

Why is it important to address roof damage to prevent future problems?

It is important because once roof problems extend into the home, they can become significantly more expensive and complicated to repair, and can lead to liability and financial responsibility falling on the homeowner.

How does the speaker use an analogy to explain the importance of addressing roof damage?

The speaker uses the analogy of a new vehicle, like a Ford F-150, that has its expected lifespan reduced due to damage or theft. This helps the homeowner understand the concept of a reduced lifespan and the need to act before the situation worsens.

What is the impact of rate increases on the cost of a roof replacement?

Rate increases can significantly raise the cost of a roof replacement over time. For example, a $15,000 roof today could cost over $25,000 in five years with a 10% quarterly increase.

What is the speaker offering as a free resource for those interested in his sales training?

The speaker is offering a free copy of his 'Pitch Like a Pro Roofing Sales Training Video Library', which is organized by category and serves as a comprehensive reference tool for various sales topics.

How can the speaker's approach benefit both the homeowner and the insurance company?

The approach benefits the homeowner by ensuring they understand the importance of addressing roof damage and protecting their financial investment. For the insurance company, it helps maintain a good relationship with policyholders and ensures that claims are filed when necessary, preventing potential future complications.

Outlines

00:00

🏠 Overcoming Homeowner Reluctance in Roof Insurance Claims

In this segment, Adam Benzeman, the 'Roof Strategist,' addresses the common reluctance of homeowners to file insurance claims for roof damage, even when they have been paying premiums regularly. He emphasizes the importance of educating property owners about the significance of addressing roof issues promptly. Benzeman introduces a sales analogy, comparing it to leading a horse to water and making it thirsty, rather than forcing it to drink. He advocates for a patient, customer-centric approach that focuses on guiding homeowners to make informed decisions about their roofs. The speaker outlines his intent to educate viewers on the reasons why insurance companies cover roof replacements, using a three-point rationale and a mock role-play scenario to illustrate his points.

05:00

🚗 The High Cost of Delayed Roof Repairs and Insurance Claims

This paragraph delves into the financial implications of delaying roof repairs and insurance claims. Benzeman uses the analogy of a new Ford F-150 truck to explain how the lifespan and value of a roof can be compromised by damage, similar to how a vehicle's lifespan is reduced by wear and tear or theft. He points out that not addressing roof damage can lead to more expensive replacements in the future due to increasing costs in the roofing industry. The speaker also highlights the potential for future interior damage if the roof issues are left unaddressed, which insurance may not cover if a claim was not filed initially. Benzeman concludes by encouraging homeowners to consider the long-term financial and practical benefits of using their insurance to protect their investment, and he offers a free resource for further sales training.

Keywords

💡Insurance

Insurance is a financial product that provides protection against potential risks or damages. In the context of the video, it refers to the homeowner's insurance that covers roof replacements. The script discusses how homeowners may be hesitant to file claims, despite having insurance premiums. It emphasizes the importance of educating property owners on the benefits of using their insurance to protect their financial interests.

💡Claim

A claim in insurance is a request for payment made by a policyholder to the insurer when a loss or damage occurs. The video script highlights the reluctance of homeowners to make claims due to fear or misunderstanding. It stresses the importance of guiding homeowners to make informed decisions about filing claims for roof damage.

💡Premiums

Premiums are the payments made by an insured to an insurer in exchange for coverage. The script mentions that homeowners pay premiums regularly but may hesitate to use their insurance when needed. This highlights the disconnect between the financial commitment to insurance and the actual utilization of its benefits.

💡Roof Replacement

Roof replacement refers to the process of removing an old or damaged roof and installing a new one. The video script identifies roof replacement as one of the main reasons insurance companies cover claims, emphasizing its high cost and the potential for damage to shorten a roof's lifespan.

💡Service Life

Service life is the period during which an item, such as a roof, is expected to perform its intended function without significant failure. The script uses the term to explain that damage from events like storms can reduce the service life of a roof, necessitating premature replacement.

💡Warranty

A warranty is a guarantee provided by a manufacturer or seller that an item will remain in good condition or operate properly for a specified period. The script points out that if a roof is damaged and the warranty is still applicable, the warranty becomes void, which is a key reason insurance coverage is sought.

💡Deterioration

Deterioration refers to the process of something becoming worse or breaking down over time. In the script, it is used to describe the effect of weather damage on shingles, which can lead to a shortened lifespan and the need for roof replacement.

💡Financial Interests

Financial interests pertain to the economic benefits or assets that an individual or entity holds. The video script discusses how insurance is meant to protect these interests, such as the investment made in a roof, by covering the cost of necessary replacements.

💡Rate Increases

Rate increases refer to the rise in costs or prices over time. The script mentions that the cost of roofing materials and services is increasing at a high rate, which means that delaying a roof replacement could result in significantly higher out-of-pocket costs for homeowners.

💡Analogies

Analogies are comparisons made between two different things to explain a concept or illustrate a point. The script uses the analogy of a vehicle's service life to help homeowners understand the importance of addressing roof damage and the potential financial implications of not doing so.

💡Educational Sales Approach

An educational sales approach is a method of selling where the focus is on informing and educating the customer rather than using aggressive tactics. The video script advocates for this approach, suggesting that it leads to better customer experiences and more informed decisions about insurance claims.

Highlights

The resistance of homeowners to use their insurance despite paying premiums regularly.

The fear of making a claim and its impact on losing deals, especially for smaller damages.

The importance of educating property owners to make informed decisions about their roofs.

Introducing a sales style that encourages customers to make their own decisions.

The analogy of leading a horse to water and making it thirsty to represent a non-aggressive sales approach.

The introduction of Adam Benzeman, the Roof Strategist, and his mission to help teams achieve income goals.

Three main reasons insurance companies cover roof replacements.

The roof being the most expensive maintenance item on a house.

The impact of damage on the lifespan of a roof and the voiding of manufacturer warranties.

The financial implications of a reduced roof lifespan and the need for premature replacement.

The prevention of future problems as a reason for insurance coverage.

The increasing cost of roofing and its compounding rate compared to the S&P 500.

The use of a car and truck analogy to explain the importance of addressing roof damage.

The potential for increased out-of-pocket costs if homeowners delay roof replacement.

The risk of future interior damage not being covered if a claim is not filed.

The empowerment of homeowners to make informed decisions about their insurance claims.

Offering a free copy of the 'Pitch Like a Pro Roofing Sales Training Video Library'.

Transcripts

sometimes homeowners or property owners

are resistant to using their insurance

even though they've been paying their

premiums month over month or there's

fear about making a claim and oftentimes

we lose those deals and sometimes those

deals are on more marginal or smaller

damage because the homeowner doesn't see

it as significant the roof seems fine

it's not leaking i don't want to do

anything about it now we'll handle it

later well guess what that's on us

that's on us because we did not

communicate educate and inform our

property owners to make a wise decision

on what they should do about their roof

and what i'll be teaching you now is a

sales style on this analogy

you know what they say right the saying

you can lead a horse to water but you

can't make it drink well what i'll be

teaching you is how to lead the horse to

water but getting the horse really

thirsty along the way now this works

really well as long as you're patient

you really care about your customers

experience

versus some of the more forceful or

aggressive sales tactics where you

command and tell your homeowners what to

do and direct them and push them into

getting that claim filed and that that's

kind of like a holding a bucket of water

and tossing it in the horse's face

two very different approaches in my

opinion the education approach works a

whole lot better because for guiding the

horse and getting the horse thirsty so

the decision is at their own free will a

decision that that homeowner feels

confident about that they say hey i made

the right choice which means they don't

cancel and they love working with you so

let's get to it first i just want to say

welcome or welcome back my name is adam

benzeman the roof strategist and

everything i do here on our youtube

channel and in my podcast and in my

all-in-one sales training and sales

system is designed to help you and your

team smash your income goal and give

every customer an amazing experience and

that amazing experience starts by

winning the customer through informing

them on what they're actually facing now

let's get to it first there are three

main reasons

that insurance companies cover roof

replacements what i'm going to do first

in this video is highlight to you what

those three reasons are and then i'm

going to do a little bit of mock role

play to show you exactly how i explain

this to homeowners so i'm going to lay

the foundation for you and then we'll

get into a story number one is the roof

is the most expensive maintenance item

on a house okay most expensive

maintenance i'm just going to use mate

for short and

what i mean by that is people replace

hvac units and these things right the

appliances last so long

a roof

is a service item on the home there's a

service life on the roof it has to be

replaced most of them i know i'm going

to get some oh well not stone coated

steel knot

not uh metal roofing in the last

lifetime if they're damaged they need to

get replaced for an asphalt roofing

system

it has a a wear life that we expect when

we are a homeowner let's say you bought

a roof for yourself you buy a brand new

roof we write a 20 000 check and you're

saying hey this is going to last me 30

years well if storms come through the

life span of the roof is compromised so

lifespan

is and what i'm going to say compromise

i'm just going to say it's shortened

okay the lifespan is shortened

now no one can wave a

magic wand and say it'll be seven years

less or five years ten years less but

the truth of the matter is that when

hail or wind impacts a shingle or

damages shingles if the manufacturer's

warranty was still applicable it's now

void because that's the fine print on

the warranties and the lifespan has been

compromised whether it's hail or wind

hail we have the matting exposing to the

uv rays which again over time there's

more granulos and the shingles begin to

deteriorate or dry rot essentially

so that homeowner was expecting the roof

to last 30 years that might last 20

which means

insurance covers your financial

interests it's your assets that's why we

pay insurance so you wrote a check for

20 grand expecting to not have to write

another one for 30 years well guess what

you might have to write one in 15 and

that's coming out of your pocket that's

why the insurance company covers it and

the fine the final reason here is to

prevent any future problems from arising

because roof problems are expensive

enough but once they creep their way

into the home things start getting a

whole lot more expensive a whole lot

more complicated and no one wants that

so it's in the insurance company's best

interest so now

we know the logic it's the most

expensive maintenance item on the home

the lifespan of the roof is shortened

and there are future problems here is

how we tie it all together now one last

piece that i just want to add the most

expensive maintenance item on the home

right well generally speaking i know

we've had some pretty wild

rate increases here i mean up to 20

quarterly the

price of roofing is compounding at a

higher rate than than the s p 500 has

performed over the last 50 years we are

seeing just

wild rate increases so a roof today at

today's rate increases and i just ran a

really simple projection just to spell

this out a fifteen thousand dollar roof

today at a ten percent

excuse me oops ten percent quarterly

increases which by the way we see these

rate increases from our suppliers over

five years that roof's gonna cost over

twenty five thousand dollars so what i

the reason i share this with you is

that's again that's in five years so

even if the homeowner

has a claim they don't wanna do anything

about it and then they have to replace

the roof five years sooner that's a net

ten thousand dollars more that they have

to pay for their roof

this is a big deal so the insurance

company knows it's the most expensive

roofing goes up you have to spend more

money to replace your roof out of pocket

later it's going to cost you a ton more

money because the price is compounding

so now how do we make this easier to

understand for homeowners i love using

car and truck analogy so i'll say this

mr homeowner imagine you buy yourself a

brand new ford f-150 and it's 45 000

and you expect you're the kind of person

that that will buy a vehicle and run it

through its life you're like i'm going

to have this thing for the next 200 000

miles well what if something happened or

the vehicle was stolen and

driven ragged right and then recovered

and you say hey this thing's only going

to last me another 25 000 miles or 50

000 miles you were expecting 200 000

mile life service life from from your

investment in your new truck well now

all of a sudden you find out it's only

going to last you another five more

years aren't you gonna do something

about it otherwise it's up to you you're

going to buy a brand new vehicle ten

years sooner five years soon or whatever

the case is than you expected this is

why people decide to pursue the roof

claim with their insurance because it is

the most expensive maintenance item

meaning it will wear out if you choose

not to do anything even with the small

damage we found the lifespan of the roof

will be reduced which means that you

will be required at some point in time

to replace that and if that's not in a

future insurance claim that will be

coming out of pocket and the rate goes

up tremendously and then the last thing

is that when there is damage we don't

want the insurance company nor us nor

you want any future damage occurring in

the home

now worst case if any of the areas we've

identified on your roof do become

problematic and there is interior damage

the insurance company won't cover it

unless you filed a claim so if this

happens three years from now you're kind

of outside that opportunity of taking

action on using the insurance

all of that liability and financial

responsibility falls on you and for

those reasons the people we serve even

if the damage seems marginal or smaller

the property owners decide to say hey

you know what i've been paying my

premiums month over month year over year

and i am protecting a financial

investment of mine

it is my right to use the service which

insurance is a service that i've been

paying for

and there you have it now i hope this

video helps you communicate clearly to

homeowners by leading them like a horse

to water to make an informed decision

and taking the time to educate them on

the true matters of why the insurance

company covers the roof and feel free to

use my story about the ford f-150 or

reference the vehicle that they have in

the driveway hey thanks for joining me

today and just because our time's about

to wrap up

doesn't mean you're in my time has to so

if you haven't yet done it i'd like to

get you a free copy of my pitch like a

pro roofing sales training video library

it's available right here it's every

video i've ever done organized by

category for easy binging and it's a

great reference tool on key topics like

objections and pitching and canvassing

i also have some starter paths for new

people so owners it might be a good

thing for you to pass on to your team

and if you like this video you're going

to like a whole lot more because youtube

thinks you're really going to dig this

one i'll see you soon