Quote:
Originally Posted by Philipd411
I keep hearing about insurance rates going up once you roof is 7 years old or older. Are people having this issue or is it just rumor's?
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The reason insurance rates are going up in the Villages is directly related to insurance companies paying to replace old roofs with new ones without regard to sound underwriting principles. Insurance is designed to put the insured back to whole not to make a profit. Insurance rates are promulgated on risk not profit, and it’s not a “maintenance “ policy. Lately, companies have ignored taking a deduction for depreciation, which is calculated by the roof replacement cost less a deduction for depreciation as the roof ages. Normally it stops at or around 50% of the replacement cost. Then the homeowner insured is allowed the depreciated amount less the deductible. However , the insurance companies have paid the replacement cost instead which have driven their claims costs through the roof and hurt their profitability.
Now many are not insuring old roofs or going back to paying only the depreciated amount less the deductible and the insured pays the rest. The rates for all homeowners is going up at least 40%. You can also thank the roofing companies. Don’t sign a roofing company request to let them deal with the insurance company because they will come after YOU for what the company won’t pay.