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Damato of the Day Is... "What Next for Stormers?"

By Rick Damato
October 13, 2011
I wrote a blog posting some months back that was so spicy it was never tossed into the world-wide vapor by way of Roofing Contractor. To be candid, I do not blame our editorial process; I had offended nearly every sensibility out there. So I approach this topic a bit more gently, but genuinely. 

The idea that everyone living in an area prone to occasional hail or high winds will never have to pay for a roof is not sustainable. Insurers will either find a way out of paying for all these damaged roofs or they will go broke buying them. There is no way they can continue down the road of replacing aging (not always of course) roofs with affordable deductibles. 

The high deductibles we see in Florida and other storm-prone areas will probably become the norm in most, if not all, storm-prone areas. Discounts on homeowners’ insurance for high wind-uplift or hail-resistant shingles may also spread beyond parts of the South and Southwest. 

I do not think any of this will be a bad thing. It should force builders and homeowners to think of building a more sustainable structure to begin with instead of tossing caution to the wind because “insurance will pay for it.” 

Homeowners will still replace their damaged roofs, but doubtless that will come at a slower pace. Roofing contractors and homeowners will once again be able to sit down together and agree on terms of a contract to replace the roof that the homeowner wants and for which the contractor will be fairly paid. And without the influence of an insurance settlement. 

I predict today’s class of mega-stormer will remain and continue to grow, but at a slower and more sustainable pace. Some may be lured away as new opportunities for rapid growth emerge in other sectors, but those who choose to stay in the retrofit roofing business stand to do very well. 

I believe better educated consumers who have more skin in the game are better consumers. I believe that a “red hot” market that lasts six to 18 months is inferior to a “very good” market that lasts two to five years. I believe that every single roof would be done in each case, but the slower pace would be better for roofing consumers, the roofing industry, and even the insurance industry.


 

KEYWORDS: sustainability

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Rick damato update
Rick Damato is the editorial director of Roofing Contractor. He has held a number of posts in the roofing industry since 1974 and has contributed to the magazine since its inception in 1981. He can be reached at 770-331-7858 or on Twitter @RoofsByRick.
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