Mike Silvers, CPRC, Owner of Silver Systems Inc. and FRSA Technical Director
You can’t read a newspaper or tune into any news source that covers Florida without the “property insurance crises” being significantly featured. “Free Roofs,” “Unscrupulous Roofers,” “Soaring Property Insurance Premiums,” and “Insurer Insolvencies” are just a few examples. All of these issues are coalescing. Groups from both inside and outside the state are attempting to address them. FRSA is involved at many different levels.
Anyone who has been involved in construction over the last several decades is familiar with the ever-increasing demand for resiliency in our buildings and, even more so, in our roof systems. FRSA has, of course, been a willing partner in improving the Florida Building Code. We have tried to steer the inevitable changes in a direction that improves a roof’s wind resistance while maintaining the primary purpose of resisting moisture intrusion. All of this, while striving to improve the longevity of these roof systems. Many of the code changes dealing with increased resiliency have been championed by the insurance industry. The intention was to reduce the cost of claims that are paid by all of us and to also maintain the ability to occupy the structures after windstorms. These are good goals at many levels but the improvements come with increased costs. The additional cost has seemed justifiable in order to achieve better performing roof coverings. Quality, resiliency and longevity have long been the hallmarks of our craft. With a willing owner and a quality contractor using premium products and following the code, we can produce incredibly durable and sensible roof systems.
This is where the irony begins. The same insurers that pushed our industry to meet these high expectations are now undermining their own efforts. They are regularly demanding that their insureds replace these roof systems in as little as 10 to 12 years of age. Depending on the type of roof covering and the quality of the installation and material, they could easily have a remaining serviceable life of two or three times that long. What incentive is there to buy a better, more resilient roof when it will have to be replaced prematurely regardless of its condition?
Property insurers are rightfully alarmed by Florida’s ever-increasing cost and the quantity of roof damage claims. Florida’s legally
contested claims over the last several years have amounted to nearly 80 percent of all such claims in the country. “Free roof” claims are at the center of the problem. When some unscrupulous contractors team with similarly minded adjusters and attorneys, the cost of these claims can easily be four or five times the legitimate cost for a reroof. This is bad enough, but in many cases the roof that was replaced wasn’t damaged at all. One of the ironies is that approximately 70 percent of the payout amounts from those claims went to attorneys.
The laws in other states do a much better job of heading off this sort of activity. It seems the solution is in the hands of the insurers, the lawyers and the legislature. Yet everyone seems to want to blame the roofers. There are clearly some bad actors in our industry but they are a minority. FRSA’s efforts to help solve this problem demonstrate this.
Another bit of irony is that the previously discussed insurance industry practice of forcing premature roof replacement is influencing their insureds. If your roof is eight years old and you now have to replace it when it’s ten years old, you are certainly more likely to look favorably on the guy who knocks on your door offering you a “free roof.” The insurance industry is not claiming that roofs that are more than ten years old are more susceptible to damage. Their logic is simply that most of the “free roof” claims are for roofs older than that. Following that thinking, they seem to believe that if all roofs are less than ten years old, they won’t have any claims. As if the storm chasers couldn’t claim storm damage on newer roofs when the older ones have all been replaced. Talk about wishful thinking. Imaginary hale and high-wind events can affect any roof regardless of age, at least when an attorney gets involved.
The waste of natural resources, the increased debris generation and diversion of financial resources at so many levels is simply not sustainable. The legislature has been working on the issue during the last several sessions but a true solution has been elusive.
One thing is clear: we can’t afford to just roof our way out of this and at the same time install high-quality storm-resistant roof systems.
To end these claims, insurers and the Legislature must find a way to cut off the flow of cash that pays for undamaged roofs with many years of serviceable life remaining. Legitimate roofing contractors have taken great exception with the way the worst abusers have sullied our reputations. Part of the solution involves proper roof inspections by knowledgeable and qualified contractors willing to verify a roof’s condition and remaining serviceable life. This, along with a willingness to push back against fraudulent claims and prosecution of those perpetrating fraud, is the most effective way to accomplish positive change. Make no
mistake, for the sake of our industry’s reputation we have to be part of the solution.
Mike Silvers, CPRC, is owner of Silvers Systems Inc. and is consulting with FRSA as Director of Technical Services. Mike is an FRSA Past President, Life Member and Campanella Award recipient and brings over 40 years of industry knowledge and experience to FRSA’s team.
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