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Blue tarps cover a roof
Credit: US Army Corps of Engineers

Fla. Regulator: Insurers Can Offer Roof Deductibles

A bill to make homeowners pay roof-replacement deductibles failed, but OIR says it can be an insurer option, such as lower premiums for owners willing to take a risk.

TALLAHASSEE, Fla. – Florida has had a rash of insurance claims alleging damaged roofs covered under their homeowner’s property insurance policy, and the 2022 Florida Legislature considered a fix that would have charged homeowners a deductible if their roof needed replacement following a covered event. However, the bill, SB 1728, passed the Senate but failed in the House.

While the Florida Legislature may return to Tallahassee for a special session to discuss the state’s property insurance challenges, it’s generally not expected to do so before November after a new House Speaker takes over.

On Wednesday, however, the Florida Office of Insurance Regulation (OIR) announced that it would allow insurers to offer roof-replacement deductibles as an option in their policies.

While SB 1728 would have made the roof deduction mandatory for all state policy holders, OIR will make it an option insurers will offer if they’re approved to do so. It would likely be something in the form of a premium reduction for homeowners willing to take a risk and hope that their roof won’t be damaged in a future storm.

“That will give companies more latitude,” William Stander, director of the Florida Property & Casualty Association, told the Insurance Journal. “We’re glad to see OIR moving forward on this.”

It’s unclear how much OIR’s new option might change the Florida property insurance market, however, since it largely depends on the number of homeowners willing to choose the option.

Source: 2022 Insurance Journal, William Rabb

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