Instead of getting ‘replacement cost’ coverage, insurers could offer ‘actual cost’ policies for older roofs
TAMPA, Fla. (WFLA) – Florida homeowners are starting to see the results of insurance companies taking drastic measures to prevent future losses. And that might just be the start.
The bill has already passed a legislative committee and would allow insurance companies to change the way they cover roofs over 10 years old.
“It’s a constant of insurance companies trying to pretend that the reason they keep raising rates every year is because of all this fraud, and then they come up with solutions that always end up getting out of the way. consumers’ pockets,” the state said. Senator Annette Taddeo, Democrat of Miami.
Taddeo, along with two other senators voted against the bill which passed in the first of three committee hearings this week.
Senate Bill 76 was proposed by Jim Boyd, a Republican from Bradenton. The bill would allow insurance companies to offer policies for roofs over 10 years old that would provide what is called actual cash value, instead of replacement cost.
The settlements would be based on what the insurance company determines the current value of your depreciated old roof.
Why? Boyd says it’s because of years of fraudulent roof claim litigation that’s costing insurance companies billions and reducing the number of policies offered in the Sunshine State.
“At the end of the day, what I’m hoping we can do is provide better access to markets, more markets will be interested in working in Florida and lower costs for consumers,” Boyd said.
He said he felt bad for consumers who will face the unexpected difficulty of replacing a roof early, especially during a pandemic. However, he said he thought it was the right thing to do in the long run.
Boyd explained that premiums are increasing dramatically and this legislation will actually help reduce premiums in the future. When that happens, he explained, homeowners will have more money to save for future roof replacements.
“As owners, I think you have an obligation to replace a roof over time, and you have to start putting money aside or whatever it takes to be ready for that day. “, Boyd said.