Whether you are renewing your home insurance policy or taking out a new one, you may be wondering why premiums and deductibles have been conspicuously high lately.
The reason that the average cost of a homeowner’s insurance policy has substantially increased is a compounded result of roof replacement litigation and a few seasons of severe storm damage.
The rate as which insured homeowners have been filing roof damage claims is through the roof. They are demanding the entire roof be replaced, due to wind or hail damage, when the rood could have just been repaired rather than fully replaced.
Legislation Addressing Rising Homeowner’s Insurance Costs
Rising homeowner’s insurance costs have been catching Florida legislators’ eyes and have even led to a few proposed bills that are now working their way through the house and senate.
The following three bills are aimed at resolving the root causes of rising homeowner’s insurance costs, including:
● Homeowner roof claims
● Associated attorney fees in homeowner’s claims
● Challenges surrounding notices to insurers
“Senate Bill 76 would allow insurance carriers to limit coverage on roof claims. Under the provision, a carrier can include a roof surface reimbursement schedule endorsement to the insurance policy, which allows for reimbursement for repairs, replacement, and installation based on the annual age of a roof surface type, unless the roof is less than 10 years old.
The schedule also would provide reimbursement amounts of no less than 70% for metal roofs, 40% for concrete, clay tile, wood shaker, and shingle roofs, and 25% for any remaining roof types…also extends certain statutes to cover all property insurance claims instead of just a windstorm or hurricane claim, which would bar property claims if the insurer is not provided notice of claim or supplemental claim within two years of the date of the loss.” – Insurance Journal
“The Florida House of Representatives companion bill to SB76 would amend the same statutes as SB 76, except it does not involve adding the claimant’s requirement to provide notice of intent to initiate litigation proposed in SB76. This bill is currently awaiting a hearing by the House Banking and Insurance Subcommittee.” – Insurance Journal
“The Florida Senate also introduced this as a standalone bill addressing just the attorney’s fees issue of reasonableness and multipliers. SB 212 would only entail adopting the lodestar fee for property insurance policy lawsuits. SB 212 is currently awaiting a hearing by the Florida Senate Banking and Insurance Subcommittee.” – Insurance Journal
These bills, once passed, should help lower or, at the very least, slow the rise in homeowner’s insurance costs–especially all Florida home lenders require you to have it.
If you need assistance finding a home insurance policy that fits your budget, contact GWK Insurance to get started. We will find you the best policies that meet your lifestyle and financial needs.