Rising premiums and lower payouts: What homeowners need to know about their roof coverage

Minnesota roofs have taken a hail pounding in recent years. In 2022, a series of storms caused $1 billion in damages, much of it to roofs. 

A year later, a single storm in August caused $1.1 billion in damages. In the aftermath, homeowners saw their premiums rise and  insurance settlements lower.

"We've seen a lot of really increased storms that have, like, much higher volume of claims. So that means that there's higher winds, more hail, those kinds of things that's a result of climate change," said Grace Arnold, Department of Commerce commissioner.

That means homeowners are seeing a lower payout per claim. 

"We've seen companies try different things, to put more of the cost on consumers, to lower the cost of the premium in the front, so that when you're doing a claim, you're taking on a little bit more at the end," said Arnold.

Consumers have shared their homebuying difficulties with WCCO. They say when they bought a new house, they were told they couldn't get insurance unless they got a new roof first

The Commerce Department regulates insurance companies in the state, but the commissioner told WCCO she had not heard about that issue.

"I think that's something new that we'll definitely look into, because if people aren't able to get insurance because they have an older
roof, that's a big problem," said Arnold.

You can call the Department of Commerce consumer line with any questions or concerns.