My Account LoginPEOPLE’S TRUST INSURANCE ROOF DEDUCTIBLE AGENT FAQS
- STANDARD OPTION: This Roof Deductible Endorsement follows the approved guidelines outlined in the special legislative session (Statute 627.701).
- HIGHER DISCOUNT OPTION: This option is designed to help lower a home insurance policy premium and is a great option for harder-to-place older roofs in good condition.
- What is a roof endorsement or a roof deductible?
A roof endorsement is a modification that adds a new roof deductible to a home insurance policy which increases the policyholder’s responsibility in the event of a roof claim, that helps to reduce their premium.
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How does the roof deductible work?
Standard Option: This Roof Deductible Endorsement follows the approved guidelines outlined in the special legislative session (Statute 627.701). It will be automatically added to all new business effective 3/17/2023 and added to renewal business beginning 5/16/2023. The deductible is 2% of Coverage A (dwelling coverage limit).
Higher Discount Option: By opting out of the Standard Option, policyholders can select this Higher Discount Option and increase their roof deductible even further while lowering their premium. This is a great option for harder-to-place older roofs in good condition.
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Is a roof deductible endorsement optional?
Standard Option: will be added to all new and renewal policies by default (per a Notice of Change in Policy Terms for renewals), but the policyholder can opt out by signing a Rejection of Roof Deductible form. In order to obtain the form, please contact Underwriting via chat, email, or phone.
Higher Discount Option: The preferred endorsement for homes with roofs more than halfway through their roof-life expectancy. It is recommended to add this deductible at 10+ years for a shingle roof, and 15+ years for a tile roof.
- Does every property qualify for a roof deductible?
Not every property qualifies for a roof deductible.
Standard Option: The roof deductible must be greater than the AOP deductible, and the policy must have windstorm coverage.
Higher Discount Option: The roof deductible must be greater than the Hurricane Deductible. Qualifications for a roof deductible endorsement depend on several factors including the age, material, and condition of your roof. The roof deductible endorsement will not be available if the policy excludes windstorm coverage.
- When does the Roof Deductible apply?
Standard Option: In the event of a covered loss to the “roof system,” the Roof Deductible, AOP Deductible, or Sinkhole Deductible, whichever is higher, will apply. At the time of loss, if 50% of the actual roof replacement cost is less than the Roof Deductible displayed on the Declarations Page, the Roof Deductible will be reduced to 50% of the actual roof replacement cost.
- A total loss caused by a covered incident
- Damage caused by a hurricane
- Damage caused by a tree or other hazard that damages the roof and punctures the roof deck
- Damage requiring the repair of less than 50 percent of the roof
- Hurricane
- Tropical Storm
- Windstorm
- Hail
- Will the insured ever be responsible for more than one deductible with the Standard Option?
Standard Option – No. If a roof deductible is applied, no other deductible under the policy may be applied to the loss.
Higher Discount Option – Yes. In the event of a covered loss due to a hurricane occurrence, a tropical storm occurrence, windstorm, or hail, they will be responsible for the appropriate deductible for that loss in addition to the deductible for a roof loss that occurs.
- If there is a total loss, would an insured also be responsible for their roof deductible?
Standard Option: In the event of a total loss caused by a covered incident, the roof deductible does not apply, the corresponding deductible for the peril would instead apply.
Higher Discount Option: If the total loss was caused by a hurricane occurrence, a tropical storm occurrence, windstorm, or hail, then both deductibles would apply. If the total loss was due to another peril, such as fire, then only the “all other perils” deductible would apply.
- If the insured pays their roof deductible once, and then has another separate roof claim within the same year, will they be responsible for paying the roof deductible again?
The roof deductible endorsement is paid per event, not per calendar year, so if they have two separate covered losses in one year then they would be responsible for their deductible for each separate claim.
- Will my roof deductible stay the same year over year?
Standard Option: Once the endorsement is added to a policy, the roof replacement cost will automatically adjust every year as Coverage A is adjusted. The deductible will always be listed on the Declarations Page with your other deductible selections.
Higher Discount Option: Once the endorsement is added to a policy, the amount of the deductible will be determined based on the type of roof surface material and the age of roof in years and is a percentage of the estimated roof replacement cost. As the age of the roof and the estimated roof replacement cost changes, the amount of the roof deductible will adjust. The deductible will always be listed on the Declarations Page with your other deductible selections. - How is the roof replacement cost calculated? Can it cost more at time of loss?
Standard Option: The deductible is 2% of the Coverage A limit of the policy.
At the time of loss, if 50% of the actual roof replacement cost is less than the Roof Deductible displayed on the Declarations Page, the Roof Deductible will be reduced to 50% of the actual roof replacement cost.
Higher Discount Option: The estimated roof replacement cost is provided by Verisk 360Value and based on the dwelling address and roof material. It also factors in the age of the roof. It will never cost more at the time of loss. It is determined and set at time the Roof Deductible is added onto the policy and recalculated at each renewal. - What’s the difference between a roof deductible and ACV coverage on my roof?
ACV (Actual Cash Value) on a roof is the cost of replacing the damaged roof with a new roof, minus depreciation (decrease in value due to wear, tear, and time), and is calculated at the time of loss; whereas a roof deductible pays the appraised amount for a new roof minus the deductible, which is agreed-upon at the beginning of the policy period.
Other carriers in the Florida market have introduced a similar endorsement on their policies using an Actual Cash Value (ACV) method. People’s Trust believes roof deductibles are a better option than ACV because ACV policies determine the amount of deductible ONLY at time of loss. By not disclosing deductibles up front and leaving them open to interpretation at the time of the claim.
(ACV) the policyholder is exposed to unknown pricing and downside when they are at their most vulnerable – during a claim.ACV example: if a $2,000 television has a useful life of ten years, and the TV is five years old, it has an actual cash value of $1,000. - Can I add/remove the roof deductible endorsement at any time?
If the policy is eligible, the roof deductible endorsement can be added at any time.
Standard Option: You can remove the roof deductible endorsement by signing a Rejection of Roof Deductible Form at new submission and renewal only.
Higher Discount Option: You can remove the roof deductible endorsement if you replace your roof and submit a final roof permit, or at renewal to be reviewed by underwriting. If an insured would like to change their Roof Deductible selection from the Standard Option to the Higher Discount Option, a PTI Policy Change Request can be submitted to underwriting.
- What supporting documentation is required to add/remove the roof deductible endorsement?
Standard Option: A PTI Policy Change Request Form must be signed and submitted in order for the endorsement to be added.
If the endorsement is deselected at new business, the Rejection of Roof Deductible Form will be mailed to the insured automatically and will also be available to the agent under the policy’s batched items. The Rejection of Roof Deductible Form must be submitted to underwriting as a part of the new business required documents.
If the Insured wishes to opt-out of the Roof Deductible Standard Option upon renewal, the Rejection of Roof Deductible Form is required. In order to generate the form, please contact Underwriting via chat, email, or phone. Once generated, the form will be available to the agent under the policy’s batched items and will also be mailed to the insured automatically.
Higher Discount Option: A PTI Policy Change Request Form must be signed and submitted in order for the endorsement to be added or removed.
- What happens if I replace my roof?
As a general rule, any time a roof is replaced Agents should inform Underwriting in order to maximize the newly eligible credits.
- Why are roofs suddenly an issue with homeowners insurance?
The increase in fraudulent roof claims in Florida has exponentially contributed to the rise in insurance rates.
Roofing contractors, water mitigation companies, and other businesses that profit by recovering insurance policy benefits to repair or replace roofs or related damage often convince policyholders to submit claims their policy does not cover. Roofing contractors, water mitigation companies, and other businesses that profit by recovering insurance policy benefits to repair or replace roofs or related damage often convince policyholders to submit claims their policy does not cover. These fraudulent claims, and the lawsuits that often ensue because of them, drive up the cost for insurance carriers who then raise rates for policyholders in order to cover these unpredicted costs. According to the Office of Insurance Regulation, Florida accounted for 79% of the nation’s homeowners insurance lawsuits over claims filed, even though Florida only makes up 9% of the nation’s homeowners insurance claims. Florida’s 9% of nationwide claims resulted in 79% of ALL claims litigation in the country. Rising home insurance premiums in Florida are a direct result of this extremely high litigation rate.
The Standard Option Roof Deductible does not apply to:
Deductibles are not “stacked.”
Higher Discount Option: The Roof Deductible will apply to losses to the “roof system” when caused by:
The Higher Discount Option will be applied to the portion of the loss directly pertaining to the “roof system.” Deductibles other than the Roof Deductible will be applied to the portion of the loss not directly pertaining to the “roof system.”
Deductibles are “stacked.”
