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More evidence of Florida property insurance companies not insuring older homes

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Tampa Bay, Florida — Learn more about what Florida real estate insurers are doing to stay business for homeowners and circumvent new roof state laws.

Independent insurance agents say that insurance companies are not sneaky to avoid insurance for old roofs, but instead they cannot take any further financial risk of being sued.

A new law from the May special session has banned companies from denying homeowners insurance because of their roof age. If it is more than 15 years old, they must be inspected and waive the right to prove that it is at least 5 years old.

Recommendation: Florida Insurance Regulators Establish Temporary Reinsurance Program Prior to Downgrade

but, Several insurance agents tell ABCActionNews that new requirements are occurring They come from multiple companies, including restrictions on the age of the entire house.

This week, Southern Oak sent a notice to agents stating that as of July 30, it covered only homes with a minimum of $ 250,000 and all homes must have been built in 2022.

WFTS

In addition, due to increased reinsurance costs, new businesses are temporarily closed in 10 counties.

  • Broward
  • Escambia
  • bay
  • Indian river
  • Lee
  • Martin
  • Monroe
  • Palm beach
  • Santa rosa
  • Walton

The Southern Oak description in the notice states:

“The Florida real estate insurance market faces many challenges that have led to higher rates, reduced capacity, and some companies withdrawing from the market. The prosperity of positive growth so far this year. Thanks to this, we are outperforming expected reinsurance growth, and by temporarily limiting capacity, we have a level of credible financial responsibility and exposure management that policyholders and agency partners know. I feel I can maintain it. “

Mike Puffer, Florida’s strategic insurance partner and agent, explains: And they are also trying to do that by mitigating the risk of all current policyholders. That’s why we’re getting a lot of non-updates and we’ve received a lot of notes that people have to make some changes if they want to keep the press. “

Currently, at least five other companies are said to have age limits on their homes.

  • Olympus
  • American tradition
  • American honesty
  • Universal Property & Casualties
  • Front line

“American Integrity didn’t intend to write a home more than a year ago, so it started in some areas, saying it had to be a brand new home, and now they’ve opened it up throughout Florida. I believe, “Puffer explained. “So the insurers have just entered an incredible protection mode where they want to continue their business and handle all the policyholders they are currently writing.”

That’s good news for homeowners, as some companies are no longer writing, apart from rate hikes.

In addition to nine already trustees and a few who have left the state altogether, Bankers Insurance has announced that it will withdraw from Florida homeowners insurance to continue writing commercial and flood insurance. Company.

In a statement on Monday, Bankers said:

“Unprecedented reinsurance costs over the past few years have forced many carriers, including bankers, to seek viable options to continue to offer a variety of product lines in needy markets. Unfortunately, recent legislative measures have failed to adequately address the pressing financial challenges facing real estate and non-life insurers, such as fighting fraud and litigation that outperform all other states exponentially. Therefore, we have made the difficult decision to notify the Insurance Regulatory Authority that bankers will end the Florida Homeowners (HO3) and Homefire (DP3) lines. “

Michelle Mosher, agent and owner of Southshore Insurance Professionals, said he is also looking at other new requirements.

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“Currently, some companies use roofs after more than 15 years, but they need a secondary water resistant layer as part of their windbreak, otherwise they are unacceptable. Therefore, they did it 15 years ago. If you don’t, when you get the roofs, you can’t go to them as an option, “Mosher explained.

Some insurance companies, such as American Integrity, have undergone qualified inspections to provide insurance for homes over the age of 30. There are also specific programs that adjust coverage according to the age of the home and its characteristics. Agents writing for multiple companies can help homeowners find the best insurance for their home.

While waiting Possibility of downgrade from Florida rating agency DemotechPuffer’s advice is that homeowners with old roofs should immediately start budgeting for new roofs so that they can continue to get coverage.

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