Like other landowners in the state, local landlords receive cancellation notices from state insurance companies.
It’s also no secret that carriers have shelled out billions of dollars to fight fraudulent and frivolous claims from roofing companies that have homeowner permission to collect from insurance companies. Roofing companies are knocking on doors and promising homeowners that they can get them a new roof for free, even if the roof has minor damage.
State property insurers paid
And who pays the lawyers when the insurance companies lose in court? Insurance companies, which kills their bottom line.
“We have had a number of calls from new prospects due to some of the recent insolvency issues and have been successful in finding alternative cover for them,” he said. “For many, Citizens is quickly becoming the only option available.”
“We’ve had five in liquidation this year,” says
“We tell people we’ll help them find a carrier, we buy them with other carriers,” Peck says. “We can’t find a new carrier for maybe 1% of callers.”
Bi-Rite and other insurance companies have found a way around fraudulent roof replacement schemes by recommending a roof inspector they trust, Peck says. This way, homeowners don’t have to rely on a roofing company knocking on doors for an honest appraisal. It also protects insurance companies against fraudulent claims.
“It’s happening, it’s definitely happening, especially after the recent hailstorm,” she says of roofing companies pricing new roofs. “Some people are old and can’t get on their roof, so they hand over a stranger and walk in there blind.”
“We have a favorite inspector, for our customers too, and he made us a deal if they wanted him to come and do a special inspection for a small fee. So they were able to get a legitimate opinion in which we have also trust.”
There is relief, however, in the new property insurance law which has come into force.
The new law also prohibits contractors from misleading a homeowner for the purpose of making a property insurance claim for roof damage unless they also inform the homeowner of their rights.
According to Peck, the new bill helps protect homeowners from carriers canceling them because their roofs are too old. The new rule: Homeowners cannot be terminated when a roof is less than 15 years old or when an older roof is still in good condition.
“Insurance companies weren’t renewing homeowners’ policies when the roofs reached a certain age,” says Peck. “They put a cap on it.”
Slade also likes the roof life rule.
“It’s nice that policyholders have the ability to provide a ‘useful life certification’ to their insurance companies for roofs over 15 years old. I think SB 2D has the potential to help a lot of issues that have become common over the past few years,” Slade said, “but it will take time to see the full effects.”