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People’s Trust Insurance Roof Deductible Filing Changes

Below are changes that PTI has implemented due to new and revised roof deductible options for both HO-3 and Basic Choice.

The new effective dates for the roof deductible options will be:

  • New Business: 3/17/2023
  • Renewals: 05/16/2023

Roof Deductible – Standard Option:

A new Roof Deductible Endorsement – Standard Option has been added to both HO-3 and Basic Choice. This roof deductible option follows the approved guidelines outlined in the 2022 Special Legislative Session, with the deductible calculated at 2% of Coverage A.

The Standard Option Roof Deductible will be automatically applied to all new and renewal policies that include Windstorm or Hail coverage when the AOP deductible is not greater than 2% of the Coverage A limit, unless the Higher Discount Option (our original Roof Deductible Endorsement) is selected.

For renewals, the Notice of Change in Policy Terms – Roof Deductible, NOCPT 0123 RD, will be added to every renewal where the Roof Deductible – Standard Option is automatically added for the first time. This is in addition to any other NOCPT version that may be applicable.

The policyholder has the option to remove the Standard Option Roof Deductible or choose the Higher Discount Option Roof Deductible. If the Roof Deductible – Standard Option is removed and the Roof Deductible – Higher Discount Option is not selected, the policyholder must sign the Rejection of Roof Deductible form.

The dollar amount of the Roof Deductible will be equal to 2% of the Coverage A limit of the policy and will be clearly stated on the Declarations Page. At the time of loss, if 50% of the actual roof replacement cost is less than 2% of the Coverage A limit, the Roof Deductible will be reduced to 50% of the actual roof replacement cost.

In the event of a covered loss to the “roof system,” the Roof Deductible, AOP Deductible, or Sinkhole Deductible (if applicable), whichever is higher, will apply.

The Roof Deductible does not apply to:

  • 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

The Standard Option Roof Deductible may be added at any time during the policy period by submitting a Policy Change Request Form. Once the endorsement is selected, it will automatically apply to future renewals and as Coverage A is adjusted, the roof deductible amount will be adjusted.

The deductible can be viewed in the following areas:

  • Quote
  • Quote Review
  • Printable Quote
  • Submission
  • Application Review
  • Policy Summary
  • Declaration Sheet

Quote – Endorsements Tab

Quote Review

Printable Quote

Submission – Endorsements Tab

Application Review

Policy Info – Summary Tab

Submission Policy Endorsement – Insured Tab – Endorsement Reasons

Declaration Sheet

Policy Change Request – Add Standard Deductible

Roof Deductible – Higher Discount Option:

Our original Roof Deductible Endorsement option for both HO-3 and Basic Choice has been renamed Roof Deductible Endorsement – Higher Discount Option.

In order to calculate the deductible amount, PTS will first determine the estimated roof replacement cost. PTS will receive the estimated roof replacement cost from Verisk 360Value by providing the dwelling address and roof material. Afterwards, the roof deductible will be calculated by taking a percentage of the estimated roof replacement cost. The percentage value will be determined by the age and material of the roof. The calculation can be seen below.

Roof Deductible Amount = Roof Deductible Factor * Estimated Roof Replacement Cost

The endorsement can be added or removed from the Endorsements page during quote or policy endorsement. As a requirement, the roof deductible must be greater than the hurricane deductible, otherwise a message will display and the roof deductible endorsement will not be available. The roof deductible endorsement also will not be available if the policy excludes windstorm/hail/hurricane.

For renewal policies, the roof deductible will not automatically apply and will have to be manually added by submitting a Policy Change Request Form. The endorsement may be added at any time during the policy period. Once the endorsement is selected, it will automatically apply to future renewals. As the age of the roof and the estimated roof replacement cost changes, the amount of the roof deductible will adjust.

To remove the Higher Discount Option Roof Deductible, a Policy Change Request Form must be submitted to Underwriting for review. With proof of a roof replacement to the primary roofing system and an update to the Roof Age in PTS, the Higher Discount Option will be removed and the Standard Option will be added automatically by the system.

The Roof Deductible will be clearly stated on the Declarations Page and will apply to losses to the “roof system” when caused by:

  • Hurricane
  • Tropical Storm
  • Windstorm
  • Hail

The Higher Discount Option Roof Deductible 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.”

The deductible can be viewed in the following areas:

  • Quote
  • Quote Review
  • Printable Quote
  • Submission
  • Application Review
  • Policy Summary
  • Declaration Sheet

Quote – Endorsements Tab

Note: Display Message – When Higher Discount Option Roof Deductible is less than Hurricane Deductible you will receive the message below since the Roof Deductible must be greater than the Hurricane Deductible in order to be able to select the Roof Deductible Endorsement – Higher Discount Option.

Quote Review

Printable Quote

Submission – Endorsements Tab

Application Review

Policy Info – Summary Tab

Submission Policy Endorsement – Insured Tab – Endorsement Reasons

Declaration Sheet

Policy Change Request – Add – Higher Discount Deductible

Policy Change Request – Remove – Higher Discount Deductible

Policy Form Changes:

The following forms have been added or revised:

Basic Choice

  • PTIC BCFLE029 0123 Roof Deductible Endorsement – Higher Discount Option
  • PTIC BCFLE030 0123 Roof Deductible Endorsement – Standard Option
  • PTIC BCFL RJRD 0123 Rejection of Roof Deductible
  • PTIC DP APP 01 23 Basic Choice Dwelling Policy Application
  • PTIC DP D001 01 23 Basic Choice Dwelling Declarations Page
  • PTIC DP NOCPT 01 23 Notice of Change in Policy Terms – Roof Deductible Endorsement
  • PTIC DP1 OC 0123 Outline of Your Dwelling Policy

HO-3

  • PTIC D001 0123 Declarations Page
  • PTIC HO APP 0123 Homeowners Application
  • PTIC HO3 OC 0123 Outline of Your Homeowners Policy
  • PTIC HOFL E029 0123 Roof Deductible Endorsement – Higher Discount Option
  • PTIC HOFL E030 0123 Roof Deductible Endorsement – Standard Option
  • PTIC HOFL RJRD 0123 Rejection of Roof Deductible
  • PTIC NOCPT 0123 RD Notice of Change in Policy Terms – Roof Deductible Endorsement
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