Insurance Companies: Replace Your Roof, Or Lose Your Coverage

Daytona Beach, FL – Insurance companies are passing the onus of replacing roofs onto consumers after some were delivered a letter that gave them two choices: replace your roof, or lose your homeowner’s insurance. Typically in Florida, homeowners are told to think about replacing their roofs around the 15-year mark, if there is no damage; some insurance companies won’t even insure homes with roofs older than 15. But some homeowners with newer roofs are still getting letters from their insurance companies telling them to replace their roofs or they won’t be covered. The change comes as SB 1728 advances in the state Capitol. The bill—introduced by Sen. Jim Boyd (R-Bradenton), a former insurance agent—seeks to limit costs related to roof damage claims. The change also comes as insurance rates across the state skyrocket, which insurance companies are blaming on roofers. According to John Carr, vice president of R&R Industries, the blame is really on predatory contractors. “There are some roofing companies out there that aren’t doing the right thing,” said Carr. “There’s good contractors, and there are contractors that cause problems.” But Carr says there are more problems that contribute to a rise in rates. In the past few years, Florida has dealt with hurricanes that dealt damage some are still trying to repair. Carr said R&R Industries was all over the entire state following Hurricane Irma because of the number of homes it affected; having shot up the center of the state. “You can’t blame that on roofing contractors,” said Carr. In talking about SB 1728, Carr described the bill as an “anti-consumer” bill, saying it won’t really affect just roofing companies, but also the people they serve. Under SB 1728, insurance companies will not have to pay the full replacement value for a roof if it’s beyond a certain age. To Carr, that puts homeowners in a tough spot because insurance companies will only pay cash value for a roof, not its actual value, if it is damaged and it’s past a certain age. This means insurers will only pay part of a roof’s replacement cost, leaving the rest of the bill for the homeowner. “That’s why I say this is an anti-consumer bill. This has nothing to do with us as contractors, you’re hurting the consumer,” said Carr. “You’re going to have people who don’t have $9,000 laying around. And someone has to pay the difference.” According to Carr, roof replacements typically cost, on average, around $15,000 in areas like Daytona Beach. His company has also received calls almost daily from homeowners who have received letters from their insurance company. There’s also the question of what to do if your roof is under warranty. Some companies will warranty roofs for up to 20-25 years, but won’t replace it or repair it unless something happens to it. So what happens if a consumer is told by their insurance company that they have to get a new roof, but they still have a warranty? Roofers will likely not replace the undamaged roof, meaning homeowners will still have to pay out of pocket. Carr believes insurance companies are asking roofs to be changed early so they can avoid replacing roofs come hurricane season—if any storms actually hit the state. He recommends that you have your roof inspected by a licensed professional, and repair and replace where needed. Carr says you should document any damage to your roof and keep that for your records. He’s also recommending that homeowners call their local legislators about the bills that affect them.