Homebuyers and sellers in Mississippi are set to benefit from a new law addressing the problem of insurance coverage denials based on roof age. This legislation, taking effect on July 1, aims to prevent unexpected issues with securing insurance coverage that can complicate real estate transactions.
Realtor Jon Ritten, Immediate Past President of the Mississippi Association of Realtors, highlighted the issue, noting instances where buyers were denied insurance coverage due to the age of the roof—even when roofs were relatively new. He explained that such denials leave both buyers and sellers scrambling to resolve the issue, often leading to significant financial burdens.
Gary Parker, the current President of the Mississippi Association of Realtors, pointed out that in some cases, insurance companies would cancel policies shortly after issuing them due to the roof’s age, despite initial approvals. This has caused substantial confusion and stress among buyers and sellers.
Sen. Chris Johnson, upon learning about the issue, introduced a bill to prevent insurance companies from canceling or denying coverage solely based on the roof’s age. The final legislation was kept simple to avoid interfering with the underwriting rules of insurance companies, which could potentially deter them from operating in Mississippi or cause premiums to rise.
While the Mississippi Insurance Department states that insurers focus on the roof’s condition rather than its age, the new law represents a positive step toward addressing these coverage issues.
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