Insurance crisis - roofs

You certainly don’t have to be a Realtor® to know we have a major insurance crisis here in Florida. But if you are one, it would behoove you to understand what you can do to best navigate these sometimes murky waters on behalf of your Clients who want to market their older home, especially those with an aging roof.

You see, without employing a simple, little known strategy with the Seller, the challenges of insurability can jeopardize, delay or nix an otherwise perfectly good deal for Seller and Buyer (worse, a Buyer-or their Agent-- may very well eliminate a wonderful property from a showing tour altogether!). In a case like this, understand that you can’t count on the Buyer’s Agent to know how to successfully negotiate the Contract. Suggesting a Seller should replace a perfectly good roof that may only be 15 years old absolutely is not the only answer (it happens!).

So far, we haven’t been able to count on the Florida Legislature to enact any seriously impactful legislation to disincentivize what amounts to an “incestuous triangle” when a simple signature allows the transfer of legal rights from a Homeowner to a roofing contractor in cahoots with an opportunistic litigation firm. As a result, this is the reality impacting Florida Homeowners’ insurance premiums. More on this in a future blog.

Predictably, the older the roof, the more likely it could become the Buyer’s primary leverage in final price negotiations. Anticipating this, prior to ever Listing the home, the Seller’s Agent engages a highly experienced and reputable inspection company to do a thorough roof inspection to identify and document existing and potential concerns. For example, according to fellow top-rated Compass Agent, Amy Simmons, in order to receive a 3-5 year life extension “certification” for her recent townhome listing in Abacoa [June 2024], it was essential that ALL cracked tiles (in this case, concrete barrel type) be replaced and any loose tiles be re-secured. In addition, a Wind Mitigation report with pictures (insist on drone shots to limit roof damage caused by traipsing all over it) was made to officially verify the roof’s current condition. It is essential to note that this is where any building code updates made since original construction, including newer roof replacement, should be boldly spotlighted. How a home meets or exceeds the most current Florida Building Code (FBC) and applicable local building codes will improve its chances for insurability and provide discounts for a new Homeowner.

In the end, the goal is to get the motivated Buyer to make a highest and best offer for a property they love. The Seller, also motivated and well-informed, is able to confidently negotiate a final price after eliminating what might have otherwise been a major deal-breaking issue.