A Guide to Commercial Roof Warranties

Imagine spending $80,000 on a brand-new roof for your building. After a lengthy buying process, you settle on an installer who promises you a 15-year warranty. Confident in your decision, the work proceeds. Fast-forward two years, and you have a major leak. You call the contractor, only to discover the company has gone out of business. So you contact the manufacturer, hoping they'll guarantee their product. But after a phone call, you learn that your warranty only covers installation errors. Since the contractor is out of business, your warranty is junk. You now have to spend $10,000 on a costly repair. 

Unfortunately, the situation described is not unheard of, so it is crucial for you, as a building owner, to understand your warranty options thoroughly. At GIDEON, we've been in the commercial roofing business for over 20 years and have helped hundreds of building owners and managers select a warranty. In this article, we'll review commercial roof warranties in detail:

• What kinds are available.
• What they cover.
• How to select a warranty so you don’t end up like the building owner above.

What Is a Roof Warranty?

A commercial roof warranty is an agreement that guarantees that you will not be financially responsible for repairs or replacements needed as a result of manufacturing defects or improper installation. Essentially, it ensures that your roof system will perform as intended. 
Warranties help protect your investment. A commercial roof can cost anywhere from $50,000 - $2 million, and the last thing you want is to repair or replace something due to manufacturer or installer error. Warranties incentivize contractors and manufacturers alike to perform quality work.

Kinds of Warranties

There are three types of commercial roof warranties:

1. Material Warranties

A material warranty covers, well…the material. Provided by the manufacturer, this warranty guarantees that your roof system will be free of fabrication defects. It typically ranges from 10-30 years, though some premium systems are guaranteed for up to 50 years. It does not cover the labor cost needed to replace the defective material or any issues caused by poor workmanship or installation.

2. Workmanship Warranties

Workmanship warranties are provided by the contractor and cover problems that result from mistakes made during installation. They typically include the cost of both the labor and materials needed to fix the problem. Workmanship warranties usually last between 2 and 10 years, although some will go as high as 15.

3. System Warranties

System warranties are all-inclusive warranties that cover both manufacturing defects and installation errors. System warranties are offered by the manufacturer and are only valid if the system has been installed by a certified contractor approved by the manufacturer. A system warranty covers labor and materials costs and generally lasts 10-20 years, with a few unique systems lasting 25-35 years.

4. No-Dollar Limit (NDL) Warranty

The value of most warranties is amortized over the warranty period. In other words, if you have a 20-year warranty and file a claim in year 10, only 50% of your costs may be covered. There is no amortization with a no-dollar-limit warranty. All your expenses will be covered regardless of where you are in the warranty period.

Common Misconceptions about Warranties

Misconception #1: Warranties cover all kinds of damage

Warranties are limited to the specific types of damage stipulated in the agreement. This may be workmanship errors, manufacturing defects, or both. Weather events, disasters, and failures caused by lack of maintenance are generally not covered. It is also imperative to understand that modifications to the roofing system often void your warranty. For instance, installing solar panels frequently voids a commercial roof warranty.

Warranties also do not cover "consequential damages," i.e., damages to non-roof items caused by roof failure. If desks and computers, for instance, were damaged by a leak, your roof warranty will not cover them.

Misconception #2: A longer warranty means better coverage

While a longer warranty sounds great, it's important to understand limitations and exclusions. You may be covered for 30 years, but if your coverage only includes certain kinds of roof failure, it may do you little to no good.

Misconception #3: A warranty guarantees a roof's performance

Warranties usually cover only errors and defects on the part of the manufacturer or the installer. They don't guarantee that your roof will remain leak-free or stand up to large hail. Some systems, by nature, do not perform as well as others, so selecting the right one for your needs is still crucial.

Misconception #4: A warranty substitutes for proper maintenance

Many warranties require the building owner to maintain and inspect the roof regularly to maintain coverage. It is vital to read the warranty agreement carefully and understand what the manufacturer requires to maintain its validity.

Selecting a Commercial Roof Warranty

When examining different roof systems based on warranty, there are some factors to consider: 

1. How Are You Using the Building?

Single-ply systems - like TPO, EPDM, and PVC - usually have a 20-year warranty. While this length of time will suffice for many organizations, there are some cases when a 25, 30, or even 35-year warranty may be a better choice. If you are likely to remain in the same building (and put it to the same use) for many years, i.e., if you are a hospital, school, utility provider, or government organization, a longer warranty may be a better choice. Suppose you are a high-security building, such as a data center, financial institution, prison, or museum. In that case, you may want to minimize the times you have major maintenance projects done, as these could pose a security risk. In this case, a longer warranty may be right for you.

2. Are You Installing a Single-Ply System or an Elastomeric Coating?

Warranties for single-ply systems and elastomeric coatings differ in two key ways.

a) Warranty Length

While single-ply systems frequently last for 20-30 years, roof coatings usually come with 10-year systems warranties. In fact, until a decade ago, roof coatings only came with 10-year systems warranties. Now, 15 and 20-year systems warranties are available. The difference between a 10-year roof coating warranty and a 20-year one is the contractor's skill. Because fluid-applied coatings are, in a sense, manufactured on-site, the skill of the contractor is a critical element of future roof performance. Only contractors that have proven to manufacturers that they possess a very high skill level will qualify for 15 or 20-year terms.

b) Manufacturer Inspection Standards

No manufacturer will approve a warranty until they have inspected the roof to ensure it was installed to specifications and that the contractor didn't pull a "Heinz 57" (a roofer's term for cobbling together materials from multiple manufacturers). However, the kind of inspection done by single-ply manufacturers differs substantially from that done by coatings manufacturers. 

A single-ply manufacturer will - in most cases - only inspect the top of the roof. This means that the manufacturer does not know if the installer has complied with local building codes regarding insulation or wind resistance or if they have adhered the system properly to the deck. The manufacturer trusts that the installer did these things correctly. So while they may approve the roof upon initial inspection, you may file a warranty claim only to discover the contractor did not install the system to specifications, potentially voiding your claim.

A coatings manufacturer, on the other hand, will do a thorough inspection (including a core cut) to determine that the system was installed to exact specifications. If it does not meet their specifications, they will not issue a warranty until the contractor re-coats the roof. This provides you with a great deal more confidence than an inspection by a single-ply manufacturer.

3. Cost

The better and longer the warranty coverage, the better and more durable your system, so you can expect a price increase for a superior warranty. 

A 10-year warranty will typically add 6-10 cents per square foot to your bill, a 15-year warranty will add 15-25 cents per square foot, and a 20-year warranty will add 17-30 cents per square foot.

You can learn more about costs in our guide to commercial roof pricing.

The key takeaway for building owners and facilities managers is that it is vital to hire a skilled and reputable contractor if you want to protect the value of your asset. Whether you choose a single-ply system or a roof coating, a skilled and honest contractor will ensure that you get a system that lasts and a warranty that is valid.

Maintaining Your Warranty

Different manufacturers have different requirements for maintaining their warranties. A few common ones are:

• Have regular rooftop inspections at least twice per year, immediately following rough weather and after any service work (such as HVAC maintenance).
• Contact the manufacturer before doing any repairs or other roof work. They will usually require a certified contractor to perform the work according to their standards.
• If filing a warranty claim, do so within 30 days of discovering the issue.
• Keep a record of all work performed on the roof, including non-roof maintenance and employee traffic logs

Keep in mind this is not an exhaustive list. It's important to read the warranty and understand the specific requirements of your manufacturer.

The Upshot

At the end of the day, no one wants to make a bad investment. This is especially true if you own or manage a commercial building. A good, comprehensive roof warranty can provide you with invaluable protection. Now that you understand commercial roof warranties in detail, it's time to give GIDEON a call. In a free 15-30 minute call with one of our experts, we can assess your situation and give you personalized recommendations for your roof.