Proposed laws to ‘stabilize’ property insurance coverage would lower protection for roofs greater than 10-years-old

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As an alternative of getting “alternative value” protection, insurers may supply “precise value” insurance policies for older roofs

TAMPA, Fla. (WFLA) – Florida owners are beginning to see the outcomes of insurance coverage corporations taking drastic measures to stop future losses. And this may very well be just the start.

The proposed laws has already made it by one legislative committee and would enable insurance coverage corporations to alter the best way they cowl roofs which can be greater than 10-years-old.

“It’s a relentless of the insurance coverage corporations of making an attempt to say that causes they preserve elevating charges each single yr is due to all this fraud, after which they arrive with options that at all times find yourself popping out of the pocket of the customers,” mentioned State Senator Annette Taddeo, a Democrat from Miami.

Taddeo, together with two different senators voted towards the invoice that handed by the primary of three committee hearings this week.

Senate Invoice 76 was proposed by Jim Boyd, a Republican from Bradenton. The invoice would enable insurance coverage corporations to supply insurance policies for roofs over 10-years-old that would offer what’s referred to as precise money worth, as an alternative of the alternative value.

Settlements can be based mostly on what the insurance coverage firm determines your outdated, depreciated roof is value now.

Why? Boyd says it’s due to years of fraudulent roof declare litigation costing insurance coverage corporations billon and shrinking the variety of insurance policies supplied within the Sunshine state.

“On the finish of the day, what I’m hoping we will do is present extra entry to markets, extra markets will likely be focused on working in Florida, and driving customers prices down,” Boyd mentioned.

He mentioned he feels badly for customers who will likely be confronted with the surprising hardship of changing a roof early, particularly throughout a pandemic. Nonetheless, he mentioned he feels that is the suitable factor to do in the long term.

Boyd defined that premiums are going up considerably and this laws will truly assist preserve premiums down sooner or later. When that occurs, he defined, owners could have extra money to avoid wasting for future roof replacements.

“As owners, I believe you may have some obligation that additional time a roof goes to want changing, and you need to begin setting cash apart or no matter it takes to be ready for that day,” Boyd mentioned.

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