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Legislation proposed to ‘stabilize’ property insurance would reduce roof coverage for more than 10 years

By on February 5, 2021 0

Instead of getting “replacement cost” coverage, insurers could offer “true cost” policies for older roofs.

TAMPA, Fla. (WFLA) – Homeowners in Florida are starting to see results as insurance companies take drastic action to prevent future losses. And that might just be the start.

The bill has already passed through 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 to try and pretend that the reasons they keep raising rates every year are because of all this fraud, and then they come up with solutions that always end up coming out of the blue. consumer pocket, ”State said. Senator Annette Taddeo, a Democrat from 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 regulations would be based on what the insurance company determines the current value of your old depreciated roof.

Why? Boyd says it’s because of years of fraudulent roofing claim litigation that has cost insurance companies billions and reduced the number of policies offered in Sunshine State.

“Ultimately what I hope we can do is provide more market access, more markets will be interested in working in Florida and lowering costs for consumers,” Boyd said.

He said he felt bad for consumers who will face the unexpected difficulties of replacing a roof early, especially during a pandemic. However, he said he believed it was the right thing to do in the long run.

Boyd explained that premiums are increasing dramatically and that 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 homeowners, I think you have an obligation to replace a roof as you go overtime, and you need to start putting some money aside or whatever it takes to be ready for that day – there, “Boyd said.

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