Your Questions Answered
At Ashlar, I firmly b that an educated home buyer or seller is best equipped to make their own decisions. That’s why I take time out of my day each and every day to answer someone’s real estate question. And, when I think the answer can be useful to you as well, I share it here. So without further ado:
Insurance companies’ primary motivations are to make a profit. When that profit is threatened, they basically try to change the rules of the game and/or raise rates to protect their profit.
Florida, being prone to massive storm events, regular thunderstorms, and let’s say a reputation for relaxed ethics makes it difficult for insurance companies to predict profits.
So basically the scam was roofers would go around and file dubious roof claims for storm damage, the homeowner would get a free roof and a homeowners insurance claim, the roofer would get a job and a few thousand in profit, and the insurance company didn’t care too much…. until a whole bunch of roofers caught onto this and it became a big thing.
So now insurers are raising rates to protect their profits, lobbying the state for such fun ideas as only paying out “depreciated roof value” like a used car, and refusing to insure a house with a roof older than 10ish years.
Things will probably settle down but it’s going to be another bumpy year or two.