A roof’s condition important to homeowners insurance companies

By Tricia Zwirner

Understanding the condition of your roof in Maine is critically important, especially in relation to insurance, for several specific reasons:

1. Insurance Underwriting and Premiums. Insurers carefully evaluate the condition of a roof when underwriting policies and determining premiums. A newer roof can result in lower premiums, while an older roof may lead to higher rates or even denial of coverage. Homes with roofs older than 15 to 20 years are often subject to increased premiums because they are considered higher risk. Additionally, potential buyers may face challenges securing insurance for properties with aging roofs, making it difficult to obtain coverage for new purchases, which can complicate the buying process.

2. Claims Process and Coverage. When filing a claim for roof damage, insurance adjusters will evaluate the roof's condition at the time of the incident. If they find that the damage was due to pre-existing issues or neglect, they may deny the claim or reduce the payout. For instance, if a homeowner fails to address a known leak and later files a claim for water damage, the insurer may argue that the damage was preventable, leading to potential claim denial.

3. Preventing Water Damage. A compromised roof can lead to leaks that cause extensive damage to the interior of your home, including walls, ceilings, and personal belongings. Water damage can escalate quickly, leading to costly repairs and potential health hazards like mold growth. In Maine, where humidity levels can fluctuate, mold can thrive if leaks go unchecked. By regularly inspecting your roof and addressing issues promptly, you can prevent these problems, mitigating both immediate repair costs and long-term health risks.

4. Maintaining Compliance with Insurance Requirements. Certain insurance policies include specific requirements related to the age and condition of roofs. For example, if your roof is more than 20 years old, insurers may mandate an inspection or even a full replacement to keep your coverage active. Additionally, some insurers incorporate coverage limitations into their policies such as a "Roof Depreciation Table," which decreases the amount of coverage as your roof ages. It is essential to understand your policy and its potential stipulations.

5. Impact of Maine's Weather Conditions. Maine's severe weather, characterized by heavy snowfall, ice accumulation, and strong winds, puts significant stress on roofs. Increased claim activity has been observed due to the effects of climate change, which can exacerbate these weather events. For instance, roofs that are already prone to ice damming or have structural weaknesses may be particularly vulnerable to damage during more intense winter storms. As these weather patterns become more frequent and severe, the risk of roof-related issues rises, leading to a higher likelihood of claims for homeowners.

6. Potential for Increased Repair Costs. If your roof is older, repair costs may escalate rapidly due to several factors. Initially minor issues, like leaks or missing shingles, can worsen over time, leading to significant water damage, mold growth, and compromised structural integrity. This can result in costly repairs, increased labor costs and increased claim payouts. In harsh areas like ours, delays can exacerbate damage from snow and ice, further driving up potential claim costs.

7. Resale Value and Marketability. A well-maintained roof enhances your home’s resale value. Prospective buyers are often wary of homes that may require immediate roof repairs or replacements. By keeping your roof in good condition, you not only protect your investment but also make your property more appealing to buyers. A solid roof can be a significant selling point, positively influencing your insurance rates as well.

8. Insurers have stricter age-related standards than contractors. Insurers adhere to specific policy requirements and standardized inspection protocols that prioritize long-term risk assessment when evaluating roof condition. They focus on factors such as age, material integrity, and potential for future claims, which can lead to higher premiums or denial of coverage for roofs that don't meet their criteria. In contrast, contractors primarily concentrate on immediate repairs and structural integrity. This difference means that while a contractor may deem a roof to be in good condition, an insurer may classify it as a liability risk. Homeowners with aging or poorly maintained roofs often face challenges in securing insurance, complicating their ability to protect their property effectively.

In summary, knowing the condition of your roof in Maine is essential for effectively managing insurance costs, ensuring adequate coverage, preventing damage and maintaining compliance with policy requirements. Given Maine's unique weather challenges, proactive roof maintenance and inspections can save homeowners from costly repairs, insurance complications, and potential health hazards. By staying informed and addressing issues promptly, you can protect your investment and enjoy peace of mind in your home.

Tricia Zwirner is a State Farm agent celebrating her 22nd year in Windham. She and her team would love to hear from you and can be reached via phone and text at 207-892-2864 or via email at tricia@TRICIAZWIRNER.com. <

Remodelers vs. General Contractors and Who is Best Fit for Your Project?

By Warren O’Shea

The primary difference between a remodeler and a general contractor lies in the scope of their projects. It is important to know the differences between the two professions when it comes to planning your project.

** A remodeling contractor specializes in transforming pre-existing areas of the home rather than creating new ones. Due to the specialized nature of the profession, a remodeling contactor can tailor projects to specific tastes and needs. They understand interior design and layout and are focused on attention to detail and finishing. They tend to possess artisan-like craftmanship and produce high-quality and skilled solutions with a keen eye for style, performance, and visual appeal because no one wants an ugly remodel.

A subset of remodelers, known as design-build remodelers, go beyond the traditional scope of their role by offering design services. This comprehensive approach brings design and construction under one roof and has the unique advantage of streamlining communication, potentially lowering overall project costs, and making it clear who is accountable for the success of the project. In contrast, a general contractor typically works with pre-existing plans and focuses more on project management than design.

** In many ways, remodeling can be more difficult than new construction. Remodeling requires navigating pre-existing conditions, which can be complex and unpredictable, especially in older homes where nothing may be plumb, level or square. The process involves adapting to the limitations and idiosyncrasies of the existing structure and working within the limits of existing floor plans often leading to creative problem-solving, meticulous planning, and adaptive design.

** Unlike new construction projects, where plans can be executed with fewer constraints, remodelers must carefully assess and work within the confines of what already exists, balancing the desire for modern updates with the realities of the existing home.

** Discovering hidden problems like outdated wiring or plumbing.

** Seamlessly blending new additions with the existing home, both structurally and aesthetically.

** Adhering to building codes, which may have changed since the original construction.

** Maintaining the integrity and character of the original home while updating.

A general contractor, as the name suggests, has a broad skillset and can take on a wide range of building projects. However, many GCs specialize in a particular type of project, like new home construction, commercial build outs, or even something as specific as building apartment buildings. While many GCs are adept at managing large-scale construction projects and extensive renovations, their approach likely differs from specialized remodelers who focus on detailed home improvements.

One analogy from the world of medicine would be to compare the broad knowledge of a general practitioner to the specialized knowledge of a neurosurgeon. Both have a broad base of medical knowledge, but the surgeon has spent extra time learning a very particular set of skills.

Of course, when it comes to actual skill levels for contracting and remodeling, there aren’t as many barriers to entry as there are in medicine. That’s why, when comparing the various skill levels of any professional working on your home, you should check references, study reviews, and interview at least three companies.

As far as having a remodeling project commence in your home, you need to be prepared for some disruption to your daily routine. It’s not fun. Noise, dust, or your kitchen being out of commission during construction are commonplace. The hallmark of a skilled remodeler lies in their adeptness at minimizing disruptions to the homeowner’s daily life, their strategies to control dust, noise, and ensuring the safety and comfort of the residents during the renovation process. Inquire about how the contractor works to minimize inconveniences like creating a temporary kitchen or starting a little bit later in the day.

Even if the remodeler does everything right, nothing sours homeowner happiness like having a troop of tradespeople in your house at 7am while you’re in your bathrobe drinking bitter, instant coffee. A precarious stack of empty pizza boxes will probably take up residence in a corner by the door and at the end of the fourth week you may have sampled every imaginable pizza topping known to man. A general contractor who is more accustomed to new construction may not have processes in place to keep your home livable during the building phase.

Choosing a specialized remodeler over a general contractor might help minimize these disruptions, and it should be one of the primary ways you evaluate who you might hire for the job.

Warren O'Shea is the owner of O’Shea Builders LLC, Maine’s most award-winning remodeling contractor. He has 35-plus years of residential remodeling experience. He is a certified home inspector and has been featured on HGTV, Food Network, and Maine Cabin Masters. He is a recipient of the Portland Police Department’s “Citizen Award,” and is a staunch consumer advocate. Warren has, and continues to, co-author articles for nationally distributed trade magazines. <

MEREDA’s Forecast Conference highlights Maine’s Real Estate Industry

Submitted by Larry Eliason

Nearly 1,000 of Maine’s real estate and development professionals gathered at the Holiday Inn By the Bay in Portland on Feb. 27 to learn about the latest trends and outlooks for the development and real estate economy at the Maine Real Estate & Development Association’s (MEREDA’s) Forecast Conference and Member Showcase.

The Forecast Conference featured a lineup of industry experts – heavy hitters from all corners of the industry. The day kicked off with a presentation from Chris Mallett, EdD, the Chief Administrative Officer at Northeastern University’s Roux Institute. His talk was entitled “Partnering for Maine’s Next Frontier” and focused on the forces shaping the economy of today and tomorrow in Maine. Mallett spoke about how Maine can continue to be a compelling place for people and business to move to, outlining the advantages the state has for competing in a global marketplace, as well as Portland’s potential for becoming a global tech hub like Seattle or Toronto. With the room full of real estate professionals, Mallett extolled the audience to think about how to create more professional opportunities for students. He explained that the Roux Institute and other higher ed organizations bring a wealth of diverse talent to the state, but “we need help retaining them.” Mallet urged the audience to think about how they can help create more economic opportunities to keep young people here. He then provided an overview of the new Portland campus, an exciting reenvisioning of the historic B&M Beans factory site. He concluded by encouraging more collaboration, saying that when we work together, “the possibilities are unlimited.”

With 86,000 housing units needed in Maine by 2030, Elizabeth Frazier of Pierce Atwood highlighted the legislative roadmap for housing production in Maine, calling out the need for government processes and capacity to be streamlined. For the upcoming legislative session, she explained that MEREDA will focus on three areas: workforce housing density, historic tax credits, and statutory subdivision review.

James Marple, a Senior Economist from TD Bank provided an economic outlook for 2025.

“It’s a difficult time to be an economic forecaster,” he began in reference to the current environment of uncertainty. Highlighting how the economy has outperformed expectations in the last two years, Marple said the recent administration’s focus on tariffs and immigration will have an impact on the economy. He predicted that the economy will still grow in the year ahead, but it will likely be slower with some quarterly volatility. On mortgage rates, Marple’s expectation was that the Fed will cut rates if we don’t see a trade war.

The second afternoon session featured a presentation on Municipal Trends with Mark Adams of Sebago Technics, and Dan Stevenson of the City of Westbrook. Moderated by Gary Vogel, the group examined impediments to development at the municipal level and what some municipalities are doing to support growth.

Adams, whose firm works with many municipalities on about 1,200 projects each year, talked about how staffing shortages and high turnover at the municipal level have impacted the ability to move projects forward. Citing the recent changes in federal funding sources, Stevenson predicted that there will be problems for projects with longer time financing horizons and recommended that municipalities “be careful from this point forward what federal funding you rely on.”

The final group of afternoon sessions included a Financing Trends panel with Steve deCastro of Maine Community Bank, Andrew Silsby of Kennebec Savings Bank, and David Hulit of Port 51 Lending. Moderated by Kim Twitchell of NBT Bank. The group discussed the regulatory environment and the impact of the new administration, along with the changing yield curve and how banks review financing requests and talked about how borrowers can educate themselves

At the end of the day, as MEREDA members continued to gather in conversation, it was clear that this is a group that will continue to find ways to work together to develop a responsible and sustainable future for Maine.

Larry Eliason is a Commercial Broker with Butts Commercial Brokers, 1265 Roosevelt Trail, Raymond. He can be reached at 207-415-2112 or by email at LarryEliasonBCB@gmail.com. Visit www.ButtsCommercialBrokers.com <

Make sure you have a clear title when you buy your new home

By Richie Vraux

What Is a Clear Title?

A clear title is a title without any type of lien from creditors or other parties that would pose a question as to legal ownership. For example, an owner of a home with a clear title is the sole undisputed owner, and no other party can make any kind of legal claim to its ownership. A clear title is also called a "clean title," a "just title," an "absolute title," and a "free and clear title.”
A clear title is necessary for any real estate transaction because it firmly establishes who is the property owner. Title companies must do a title search to check for claims or liens of any kind against a title before it can be deemed clear. Erroneous surveys and unresolved building code violations are two examples of blemishes that can make a title "dirty."

 

How a Clear Title Works

A clear title helps to show whether there are any outstanding financial responsibilities attached to the property and is necessary to demonstrate that an owner has the right to sell the property. The sale of a property can be disputed if legal ownership is not represented through a clear title. The presence of liens can create a cloud on the title when a claim or an unreleased lien invalidates or impairs the owner's title to the property. For example, the current owner may still owe payments on an outstanding mortgage or owe contractors for refurbishment work they performed on the property.

The title would not be clear, and the new owner would then be held responsible for resolving those liens. Once a title is cleared, the deed can be registered in the homeowner’s name. The deed is the legal document showing who owns a property. If someone is buying a home, the title must be clear before the new owner's name can be put on the deed. It's important to note that a property could potentially be sold while liens are active.

Reasons Why a Tide Isn't Clear

There are many reasons why a title search might come back listing the title as “unclear.” Just because someone currently lives in a home doesn't mean that the home has been titled or vested to that person, and when it comes time to sell the home, the buyer can run into problems with the title, meaning who owns the property is unclear.

Heirs

Complications can arise with older properties where the heirs of a prior owner may still have some claim to the real estate. For instance, prior owner may have granted a portion of a property to an heir who never took an active role as an owner. The said heir's rights as a partial owner may have passed on to their descendants, who might not be aware of the circumstance. Title problems can also arise if the heir to the property never filed the deed with the county clerk's office to transfer ownership.

When the heir goes to sell the property, title problems will occur, as the deed would still show the family member who willed the property to the heir.

Separation or Divorce

Title problems can occur in situations where a couple separated but never went through divorce proceedings. If the couple owned the home jointly and one person moved out following the separation, they would still own the house without a divorce.

As a result, title problems could arise when the person living in the home goes to sell the house because two people would be listed on the deed.

A Trust Ownership might have been transferred to a trust or another body with a legal claim to the property. This is why title searches are performed – to identify such issues before a potential buyer has committed funds to acquire a property.

Can I Buy a Home Without Clear Title?

No. You cannot purchase a home if it does not have a clear title. It is possible to identify any issues and try to correct them if you still want to purchase the home

What Are Some Reasons for an Unclear Title?

There are many reasons why an unclear title might not show up in a title search. It could be the property is old and the heirs to the property never properly filed the deed upon their inheritance. During a marital separation for example, a jointly owned home can cause a problem if two people are listed on the deed. In cases of fraud, a title may show up as unclear, as well.

Fraud

Possession of a clear title is also important to prevent instances of fraud. It's possible that a false deed may have been entered into the public record. A fraudster might attempt to use a false deed to engage in the illegal sale of properties.

Beware

There are many cases popping up today where scammers will steal your identity, steal your property and steal your money. Make sure your agent works with trusted companies that will work in your best interest.

Richie Vraux is a Real Estate Broker with Pine Tree Realty of Maine, 76 Tandberg Trail, Windham. If Richie can help you with your real estate needs, feel free to contact him at 207-317-1297. <