Chip Merlin, president of Tampa-based Merlin Law Group, said home insurers have tightened underwriting requirements for older homes, especially when it comes to roofs, plumbing and electrical systems.
“Roofs are the biggest issue," says Merlin. "Generally, in geographic areas where the demand for insurance exceeds the insurance company's appetite for risk, the greater the underwriting criteria come into play. Florida is such a state, but we are also seeing it along all coastal areas and in areas where hail damage is most prevalent."
Merlin adds that while some companies are tightening inspection requirements and requiring homeowners to cover the cost of these inspections for renewals, most insurers are simply refusing to write new policies for homes with roofs older than 20 years. (See "7 types of homes that are hard to insure.")
"The trend is to require an older roof – 15 to 20 years plus – to have an inspection to get a renewal. This is probably a good policy because it promotes better maintenance and reduces needless loss," says Merlin.
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