For years, roofing companies have relied on storm funding to drive business. But as the industry shifts, so do customer needs, insurance policies, and market expectations. The storm-reliant model is showing its cracks—and many roofers are feeling the strain. Having watched the industry closely, I anticipated these changes back in 2017 when I first saw an ACV (Actual Cash Value) policy paired with a 2% deductible. I knew then that the days of “free roofs” were numbered, and I developed a system to adapt.
Three years ago, I began implementing a model in Dallas to sell retail at over $700 per square, successfully flipping insurance while demonstrating value to homeowners. This dual funding model, funded immediately by traditional financing followed by supplemental insurance funding, is the future of the roofing industry. Here’s why roofers must embrace this shift and build the skills to sell value—not just a free roof.
Storm Funding Alone is No Longer a Reliable Strategy
The roofing industry has long depended on storm events to generate business. Insurance companies covered costs, and roofers could focus on repairs and replacements without delving into retail. But changes in policy structures have weakened this approach.
Back in 2017, I saw my first ACV policy, coupled with a 2% deductible, and I knew we were in for a change. Policy structures were shifting, and deductibles were rising, putting more financial responsibility back on homeowners. This shift signaled a new era for roofing, where traditional storm funding would no longer sustain business growth. Roofers needed a new approach to continue thriving.
Relying on storm funding alone means leaving your business exposed to shifting insurance policies, stricter payout structures, and a volatile market. As policies change, fewer clients have the financial coverage they expect. The solution? Offering a hybrid approach with traditional financing and supplementing with any available insurance funding to protect your cash flow and provide reliable service to homeowners.
Shifting to a Dual Funding Model: The Future of Roofing
In response to these shifts, I developed a dual funding model that combines traditional financing with supplemental insurance payouts. Here’s how it works:
- Primary Funding via Traditional Financing: Rather than relying on uncertain insurance payouts, your clients are pre-approved for financing to fund their roofing project upfront. This means cash flow for your business is no longer tied to insurance timelines.
- Supplemental Insurance Funding: When insurance claims are available, the supplement becomes a bonus, reimbursing a portion of the homeowner’s out-of-pocket expense. This way, the homeowner benefits from insurance without relying on it entirely, and your cash flow remains secure.
This model not only provides a steady flow of cash but also allows roofing companies to offer immediate, reliable funding options to clients. Homeowners get peace of mind knowing that financing is available, and insurance, if involved, can reduce their costs after the fact rather than delaying the entire process.
Selling Value Over “Free Roofs”
As the industry evolves, so does the need for roofers to sell value. Relying on storm funding created a dependence on the “free roof” pitch. But as insurance policies become more complex and deductibles increase, selling a roof’s value is far more sustainable. The roofing industry is moving toward a retail-focused approach, and building the skills to sell retail—convincing homeowners of the true value of quality materials, exceptional workmanship, and lasting durability—is essential.
In Dallas, we successfully sold retail roofs at over $700 per square, flipping insurance jobs into retail opportunities by highlighting long-term benefits. Homeowners understood that they were paying for quality and reliability, not just a quick fix funded by insurance. Roofers who can confidently articulate these values and deliver on them will thrive in this new landscape.
Get the Tools to Succeed in This Changing Industry
Recognizing the shift in the market, we’re committed to helping roofers transition smoothly. We’re building a comprehensive training program that covers every aspect of this dual funding model, from setting up financing options to executing the perfect pitch. Here’s what you’ll get:
- Free Documentation and Resources: Our lead magnets include detailed guides on how to integrate financing and insurance for a reliable dual funding model.
- Retail Training Program: We’ve crafted a step-by-step training program that breaks down the nuances of selling retail roofing, allowing your team to feel confident in selling value over a “free roof” pitch.
- A High-Impact Presentation: We’re making available the exact presentation I spent multiple six figures and several years perfecting—a pitch that’s produced millions in retail sales, even in storm-reliant markets. This presentation distills the insights and strategies that have kept our clients ahead of market changes and on a path to sustainable growth.
The Bottom Line: Prepare for a Dual Funding Future
The days of storm-reliant roofing businesses are fading. To succeed, roofing companies need the flexibility and resilience of a dual funding model, backed by a team that knows how to sell on value. By integrating financing with insurance as a secondary support, you build a system that benefits both your business and your clients. When you can fund projects upfront with traditional financing, you stabilize your cash flow and offer homeowners a seamless solution.
This shift won’t happen overnight, but with the right tools, training, and guidance, you can build a roofing company prepared to meet the demands of a changing industry.
Ready to transition to a sustainable, dual funding model? Book a discovery call to learn more about our free resources, retail training, and access to a pitch that has revolutionized roofing sales across the industry. This isn’t just about staying afloat—it’s about setting a new standard in roofing.
