The latest from ZestyAI, who have identified some variations in roof age data in the US property insurance sector;
ZestyAI, the leading provider of climate and property risk analytics powered by AI, has released an analysis of 27,000 properties, which identified significant gaps in self-reported roof data with far-reaching implications for both the insurance industry and homeowners.
The analysis revealed that:
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17% of roofs are older than reported by an average of 8 years, significantly increasing the risk of mispricing and unexpected claims. Aging roofs are more susceptible to accelerated wear, leading to structural vulnerabilities and higher probabilities of damage from wind, hail, and other weather-related events. This can result in increased claims frequency and severity, amplifying financial losses for insurers.
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63% of homeowners uninvolved in their last roof replacement don’t know how old their roof is, further compounding these challenges.
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Younger roofs with poor conditions, such as missing shingles or structural damage, remain high-risk. Traditional risk models often fail to capture these vulnerabilities.
Roof age is a critical factor in loss ratios across multiple perils, including wind, hail, and non-weather-related risks. Older roofs, particularly those exceeding 10 years, are prone to accelerated wear and degradation, leading to higher claims and mispriced policies. Yet, many insurers still rely on self-reported roof ages, leading to inaccuracies that delay quotes, compromise customer experience, and inflate losses.
ZestyAI’s multi-source approach achieves 97% roof data coverage nationwide by blending high-resolution aerial imagery with building permit records. This comprehensive method equips insurers with precise insights to refine strategies, mitigate risk, and strengthen policyholder relationships.
“Roof data inaccuracies are costing insurers millions in preventable losses and delayed decisions,” said Attila Toth, Founder and CEO of ZestyAI. “With 17% of roofs older than reported and aging roofs posing a much higher risk of damage from wind, hail, and other perils, the stakes are incredibly high for insurers. However, insurers no longer have to rely on outdated, self-reported or incomplete data. AI-driven insights offer a competitive edge, helping carriers reduce losses, improve customer experience, and build resilience in the face of increasing risks.
“By identifying vulnerabilities earlier, insurers can also work with homeowners to address risks before they escalate. This proactive approach not only reduces losses but also helps protect communities in the face of growing climate challenges.”
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