By Barbara Lehrer
Real Talk
Barbara Lehrer
Homeowner’s insurance has more than doubled – almost tripled – in recent years. Storms and fraudulent claims plus inflation have skyrocketed the insurance industry. Coastal areas, strewn with roof damage, have set in motion an intense study on the terms by which a homeowner can request a claim or even apply for insurance.
If your roof is older, is it fair for the insurance company to buy you an entire new roof if there is damage? State regulations have become increasingly involved in the new rules of roof ages and roof types, and therefore claims and insurance consideration. This information represents all the state insured insurance companies.
For example, an asphalt roof is now a major concern throughout the industry. This roof type is regarded as insurable if it is less than fifteen years old and shows no sign of wear and tear. Writing new policies with these restrictions now affects the homebuyer as they may be forced to replace a roof on their own that they thought would be good for 25 to 30 years, all in order to get insurance. Listing agents should discuss this qualifying information with their clients before putting a home on the market to prevent a quick upset later on.
This awareness is critical to both buyers and sellers. If you are thinking of selling your property and you have an asphalt roof over 15 years old, then your potential buyers may be taking on a home that has mandatory expenses. These new rules are across the board with all the major insurers, including Hartford, Quincy Mutual and Plymouth Rock. These main carriers are shopped by your local representatives.
This new ruling is a few years in the making and current. It includes close evaluations for wear and tree coverage before deciding on whether to insure or not. This kind of problem could result in the buyer being told that he has 60 days from the closing date to replace the roof or the policy will be terminated.
Some people are offered much higher deductibles than previously, with $2,500-$5,000 typical now. It is recommended that you only place claims on large items anyway, as each claim can result in an increase in your insurance rate or ability to maintain your insurance carrier. Do not use your contract for maintenance, putting in small claims. Whatever you can afford to fix yourself you should do. Only use insurance for large issues.
Regarding all homeowners in general, if you have a new roof, call your insurance company; you can possibly get a substantial credit. If your roof is older, beware that many companies are hiring third party aerial imagery or doing drive-by checks to see if they should reevaluate your policy. If you live within five miles of the coast, your evaluations will be coming.
We all need insurance. The industry has gone through a lot of issues and their payout schedules are stricter than ever. Rate increases across the board in all industries are apparent in this economy. I would be happy to refer a reader to the agents who are doing a great job insuring clients in our area.
If you need more information on these issues, email Barbara.Lehrer@cbmoves.com.