Roof Condition Rating Version 5 for Commercial Lines: Visual Insights Meet Predictive Performance
The new model version, built specifically for commercial buildings, will offer improved performance and tools aimed at enhancing explainability and supporting underwriter intuition. Visual callouts of roof issues on imagery clarify scoring and expedite the underwriting process, while defect quantification further assists in building robust segmentation models.
Commercial property underwriters require tools that not only deliver predictive precision but also support their nuanced judgment and expertise.
The CAPE team is pleased to announce the upcoming release of Roof Condition Rating version 5 for commercial lines, addressing the day-to-day workflow challenges that underwriters face. This new model marks a significant step forward in supporting underwriters with powerful new tools to segment commercial risks more effectively and apply their expertise with greater confidence.
Visualize, Quantify, and Explain Commercial Roof Risk
Roof Condition Rating version 5 introduces a suite of enhancements centered on roof issue visualization and quantification, enabling underwriters to see and assess specific roof issues directly on high-resolution imagery. Reason codes, previously introduced, are now highlighted directly on the roof imagery itself, providing clear explanations for each rating and allowing users to locate and communicate issues downstream efficiently. This approach to identifying roof defects—such as material degradation, ponding, patching, or the presence of a tarp—provides greater transparency in roof scoring and supports underwriters in making more efficient and informed decisions.
The new model’s roof issue quantification feature delivers an improved predictive signal for segmentation and pricing use cases, particularly for the wind and hail perils. By quantifying reason codes, Roof Condition Rating empowers data science teams to build more robust segmentation models, enhancing risk selection and supporting more granular underwriting strategies.
In addition, version 5 of Roof Condition Rating introduces the following commercial-specific roof detections:
- Roof coating detection: distinguishes between newly constructed roofs and those that have received a coating. Although coatings and new roofs may appear similar in imagery, their performances differ substantially, as a new roof typically provides a full lifespan, while a coating serves only as a short-term extension.
- Degrading coating detection: identifies when a roof coating is peeling, crumbling, or breaking down, signaling that the attempt to extend the roof’s lifespan is reaching its end
- Sealant detection: recognizes repairs in which seams and cracks have been sealed, a sign that the roof likely already had issues with water intrusion
Roof Condition Rating version 5 for commercial lines reflects our commitment to equipping small commercial, business owner policy (BOP), middle-market, and habitational underwriters with tools that combine predictive strength with the realities of commercial underwriting, particularly within human-in-the-loop workflows. Each carrier operates with distinct and complex workflows; these updates provide the flexibility to enhance manual processes or introduce automation where appropriate.
Purpose-Built for Commercial Structures
This and all versions of Roof Condition Rating for commercial lines stand apart in the industry as models developed specifically for the complexities inherent in commercial properties. These structures vary widely in size, often spanning from modest footprints to tens of thousands of square feet, and present intricate configurations with multiple structures, diverse materials, and repair strategies unique to large flat roofs. By focusing on the particular demands of commercial underwriting, CAPE enables carriers to benefit from performance and insights calibrated for their portfolios.
Roof Condition Rating version 5 will be available for testing later in 2025. However, carriers already leveraging CAPE Property Intelligence are encouraged to contact their CAPE representative to indicate their readiness for testing. Insurers new to CAPE are invited to contact us to learn more.
For more information on Roof Condition Rating version 5, CAPE Property Intelligence, or Moody’s suite of property underwriting solutions, contact us here.