In the realm of home buying and selling, unforeseen obstacles can quickly dampen the excitement of the process. Recently, a number of individuals have encountered an unexpected hurdle: the realization that their insurance policies do not extend coverage due to the age of their roofs. However, a new law seeks to mitigate these concerns and ensure a smoother transition during real estate transactions.
Realtor Jon Ritten, Immediate Past President of the Mississippi Association of Realtors, recounted instances where the age of roofs, some as young as five years old, resulted in insurance coverage denials. “Now, you’ve got buyers scrambling because buyers are now not going to get the coverage they thought they might get,” Ritten explained. “You have sellers that are scrambling because they’re saying wait a second, my roofs are not that old. I can’t afford to put on a new roof just to make this deal.”
Gary Parker, President of the Mississippi Association of Realtors, highlighted cases where insurance coverage issues emerged post-closing, leaving homeowners in a bind. “We even had binders, people that got binders on their homes, and later, you know, a month or so after would cancel their insurance policy said they couldn’t do it because of the age of the roof,” Parker noted. “And it’s just unfair from that standpoint.”
Senator Chris Johnson, upon being alerted to the issue, swiftly took action by introducing a bill aimed at preventing insurance carriers from denying coverage based solely on the age of the roof. Recognizing the complexity of insurance underwriting, Johnson ensured that the final legislation avoided overly prescriptive measures, allowing insurance companies to maintain their individual underwriting standards.
“This is not going to fix the problem,” Parker acknowledged. “But it is a step in the right direction.”
In response to the impending legislation, the Mississippi Insurance Department reiterated that insurance carriers prioritize the condition rather than the age of the roof when assessing coverage. The law, set to take effect on July 1, represents a significant development in addressing the challenges faced by homeowners and buyers in navigating insurance coverage issues related to roof age.
