Florida is facing a tough time, with insurance prices skyrocketing and many companies leaving the State. This is due to the new laws that impact how roofing contractors operate. If you’re a homeowner or a roofing contractor, it’s crucial to understand the Florida insurance crisis and all the changes.
Insurance crisis, what’s happening?
With all the hurricanes that have happened lately, comes a surge in insurance claims, many of which have resulted in lawsuits. This created a situation where insurance companies are losing money, leading to higher premiums for homeowners and some companies pulling out of the market altogether.
To address this, the Florida Legislature has passed several new laws aimed at curbing excessive claims and lawsuits. These laws focus on two main areas based on how insurance claims are handled.
Roof replacement coverage is more limited
Previously, Florida’s 25% Roof Replacement Rule required full roof replacements when more than 25% of a roof was damaged. However, in May 2022, Senate Bill 4-D changed this requirement. Now, if the remaining roof complies with Florida’s 2007 building code, only the damaged section needs to be repaired.
Key considerations for roofing contractors:
- Homes with roofs installed or replaced after March 1, 2009, fall under this new rule.
- Homes built before this date without roof replacements must still undergo full replacements if 25% or more of the roof is damaged.
- Contractors will see fewer insurance-covered full replacements, requiring them to offer financing options to help homeowners cover costs.
Why? This is to reduce the number of costly full roof replacements and control insurance payouts.
Homeowners must file their own insurance claims
Senate Bill 2-A, effective December 16, 2022, prohibits roofing contractors from filing insurance claims on behalf of homeowners. Previously, an Assignment of Benefits (AOB) allowed insurance payments to be sent directly to contractors, simplifying the process. Now, homeowners must:
- File their own insurance claims.
- Hire third-party adjusters or attorneys if needed.
- Cover out-of-pocket expenses if claims are denied or partially paid.
This change aims to reduce insurance fraud and excessive litigation, as Florida currently accounts for 76% of all U.S. homeowners’ insurance lawsuits. Roofing contractors can still guide homeowners through the claims process but cannot submit claims on their behalf.
How Premier Group helps our clients navigate these challenges
As many homeowners are unfamiliar with how insurance claims work, we dedicated specialized couching/consultants to provide a step-by-step guidance on how to properly file a claim, what are the types of damage are covered by insurance and the requirements set by insurance providers.
We offer a completely FREE roof inspection and damage assessment, identifying storm damage, leaks, or structural issues, all of this in detailed reports, that will help you determine if you have valid damage for a claim.
With this new laws in place, there is a high possibility that the claim is only partially approved, that’s why we provide flexible financing options while also suggesting affordable solutions that meet budget and insurance requirements.
The Florida roofing insurance crisis is a complex issue, but by understanding the new laws and changes, both homeowners and us can navigate these challenges together.