Home insurance increase for 21-22 (homes, buyers, construction)

[SoldTampa]

You are correct, Home Owners Insurance is going up in Florida, as a lot of carriers are exiting the State. The State of Florida is upside down when it comes to money collected vs. money paid out. According to my Insurance contacts, the Home Owners insurance industry in Florida is most likely going to need a major overhaul. I have 3 solid agents that can usually find a reasonable policy with good coverage for my clients.

[castlechurch]

Originally Posted by bentlebee

I assume your new roof is on an older home…?

Correct, 1985.

Originally Posted by MortonR

As an aside, did you get a wind mitigation study done with the new roof? It's usually done with a new roof, as it gives the insurer the details the show your new roof was installed to current code.

RM

Yes, I did have a new inspection and survey, and yes it was installed to code and permitted.

[Concert D Major]

There comes a point where we're just no longer insurable. The existence of insurance makes our aggregate recovery costs more, not less. With no insurance, you cut out all the overhead costs of ads, lawsuits, regulations, employee/executive salaries, shareholder value etc. All those nonsensical expenses disappear and what everyone pays actually goes directly toward the actual cost of recovery. Why call a claims adjuster and play the waiting game, when you can just call contractors directly yourself. In the long run / aggregate, statewide it works out better uninsured.

Besides, what's the risk of not having insurance? With insurance, you still have high deductibles, premiums, the risk of denied claims, low-balling, litigation, administrative delays approving contractors, etc. As insurance gets worse and worse, the risk of not having insurance gets lower and lower. The actual benefit of having insurance is incrementally smaller and smaller as the risk gap gets shorter and less every year.

[EngGirl]

Originally Posted by castlechurch

Mine went up $400 last year "because my roof was old" they claimed, but it was in good repair without any leaks. I opted to replace the roof this year, anticipating a lower rate....the rate still went up $600, even after the new roof that I paid for. I shopped around and there were only three companies that would cover the house, even with the new roof. They were all within $10 of one another, there was not point in switching. Never any claims, not in a flood zone, new roof, new AC, no pool. Rip. Off.

This is very sad!!! Did you try shopping through different insurance brokers?

[EngGirl]

Originally Posted by bentlebee

I assume your new roof is on an older home…?

what does the age of the house has to do with it? Insurance consist of multiple parts with roof age being single. Age of the house can get you discount but reconstruction cost will drive the cost of insurance. Cost of reconstruction has little to do with the age of the house.

[MortonR]

Originally Posted by EngGirl

what does the age of the house has to do with it? Insurance consist of multiple parts with roof age being single. Age of the house can get you discount but reconstruction cost will drive the cost of insurance. Cost of reconstruction has little to do with the age of the house.

Age of the house gives the insurer an idea of the construction practices used when it was built so they can better determine its ability to withstand storms as well as the reconstruction costs. Why do you think premiums go down when a roof is replaced? Because the new roof has been built using current codes and is more likely to survive a storm.

RM

[bentlebee]

Originally Posted by castlechurch

Correct, 1985.



Yes, I did have a new inspection and survey, and yes it was installed to code and permitted.

If the other major components of a home are older your insurance will not go down with replacing the roof.

Your insurance is aware that at some point the pipes my need to be replaced, the electrical box, etc.

[Sunshine Rules]

The cut off for some insurers had been 15 years of age for roofs. There are now some insurers that are using 10 year old roofs as a cut off point.

I read an article recently in which an insurance expert said that insurers do not care if a 10- or 12-year-old roof is still functional -- the issue is that they see homes with older roofs as most likely to be targeted by roofing contractors (and lawyers) looking for big payouts. Eliminating older roofs from their portfolios of business is the easiest way to avoid costly claims.


Then there's also the legislation passed by FL state legislature this year -- SB 76. Senate Bill 76 allows insurance companies to change the way they cover older roofs. Under the law, if your roof is over 10 years old and it gets destroyed during a hurricane, your insurance company could pay you what your old roof is worth at the time as opposed to paying 100% of the replacement cost. It creates a sliding scale for payouts on roofs over 10 years of age.

For roofs that are 10 years or older, the schedule provides for repair, replacement, and installation based on the roof surface’s annual age based on the following minimum reimbursement amounts:
70% for metals roofs
40% for concrete tile and clay tile
40% for wood shake and wood shingle
25% for all other roof types


Homeowners need to pay careful attention to all of these changes. This is also true for home buyers.

[jacques_meihaufer]

yep, good correct feedback

[castlechurch]

Originally Posted by bentlebee

If the other major components of a home are older your insurance will not go down with replacing the roof.

Your insurance is aware that at some point the pipes my need to be replaced, the electrical box, etc.

Very true, but I actually already had the plumbing all replaced two years ago with PEX and the electrical box is up to current code (previous owner replaced). But I understand what you are getting at. The main reason for replacing the roof was not just the insurance cost, but rather simply the lifespan was at it's end. It was in good repair, but 18 years on a asphalt shingle is about the max.