Do Roof Warranties Insulate You?
When installing a new roof, (new construction or replacement) an owner is faced with the role of Risk Management. Many building owners believe the serviceable life of a roof is directly related to the warranty. Roofing Manufacturers’ have seized upon these beliefs by selling “NDL (No Dollar Limit) Warranties” giving customers the euphoria of total protection. Are NDL Warranties worth it?
NDL warranties have a relatively high cost, at several levels. There is a cost per foot for the warranty and to qualify for the NDL, the “system” has to contain “everything” from the roofing manufacturer (screw, plates, insulation, etc.). Most roofing manufacturers do not make all the components in a roof system but rather put their name on them and mark them up.
This is where NDL warranties go sideways - “all the other components.”
According to Roof Warranty Research, roofs typically don’t fail because of washers or insulation. So if insulation and other components, rarely if ever, cause roof failures, why bundle them into a warranty? Does the NDL warranty guarantee the R-value of the insulation when it declines or gets wet? Would you be surprised if I told you they do not?
Maybe bundling all these other components in a NDL warranty offers better cost? When the Roofing Manufacturers bundles the other components, it ultimately places a double margin on “all the other components” - 1st mark up from original manufacturer and the 2nd mark up from NDL Warranty Roofing Manufacturer. Does this double margin reduce cost or add extra profit for the roofing manufacturer?
Interest fact, the roof installers lose their competitive ability to “shop” all the other roof components, driving the prices higher. So, NDL Warranties really take Value Engineering away from the roofer and the building owner! In reality, it really hampers the free market system in some ways.
So are NDL worth it? It has long been said, that roof warranties are written to protect the manufacturer not the owner and that the best warranty is the one that you never have to use. What is a building owner to do? I suggest saving money and take the advice of the roofing experts, make sure the roof is installed properly, do proper maintenance and faithfully monitor the roof through inspections - this is how you get longer serviceable life, not through a NDL warranty.