Roofing replacements may be more profitable than repair jobs, but a data software company is asking contractors to reconsider this mindset to not only improve their business but the industry at large.

To Repair or to Replace Roofs? That is the Question

Data from software company itel shows most roofs are repairable, raising the question: should contractors prioritize repair work over replacements? We explore the question with Paul Disney, chief product and technology officer at itel.

itel works with insurance carriers to ensure accurate pricing and identification for certain materials during the claims process. The company started a materials identification service about 30 years ago and has since expanded to exterior products, such as asphalt shingles.

The identification process is used by insurance companies and contractors alike, as they can determine aspects about a shingle, like whether it’s available or discontinued.

Paul Disney, chief product and technology officer at itel, breaks down what itel’s data is showing about roofing repairs in today’s market. Whether it’s in tornado-heavy areas or hail zones, he encourages contractors to consider the value of repair work.

“What we see with our own results is that the majority of roofs actually are able to be repaired,” Disney said. “Now, bear in mind, we're not seeing our product run on every single roof. A lot of roofs are very obviously not able to be repaired, and most of our users are savvy enough that they're not going to take the additional time to run those through our product.

“But for those gray area roofs where maybe it could go either way, we actually see that the majority of those roofs are likely able to be repaired.”

A variety of variables come into play on repairs versus replacements — including the type of damage, complexity of the job, the experience of the roofer, the adjuster and the policyholder. Disney said with rising material and labor costs, repairs could give contractors a leg up.

“Ultimately, if the business model for them can be set up correctly, I think it would be beneficial to them,” he said. “From an outcome standpoint, you should be able to repair a lot of roofs more quickly than you would be able to replace them.”

For policyholders, he said this could mean a less significant impact on the overall claim and less time spent with someone working on their roof. On the carrier side, it reduces the overall amount of indemnity costs associated with roofs.

“Part of this has to be a recognition that it’s harder to repair a roof sometimes than to replace it, or at least there’s more intricacies to it,” he said. “There needs to be a conversation around ‘Is it appropriate to have a higher rate for doing repair jobs to a roof? Can we help to shift things in the right direction?’”

Watch the video for highlights from the discussion, and check out the podcast version for the full conversation.