Georgia Bill Would Require Full Replacement for Some Types of Roofs

Georgia homeowners and roofers are urging lawmakers to take up a bill that would require insurers to provide full replacement of some types of roofs even when only a few shingles are damaged.

Supporters of House Bill 1310 have used Florida as an example of states that require the full replacement of most roofs. That’s despite the fact that some insurance industry leaders have said the full-replacement provision in Florida is one of the biggest cost drivers for insurers in Florida’s distressed market, and has encouraged fraudulent roof claims and unnecessary litigation.

“Tennessee, Florida, these laws are implemented in those states,” Georgia consumer attorney Remington Huggins told Fox 5 Atlanta news. “And all we ask is that the homeowners across the state of Georgia have the same representation.”

HB 1310, sponsored by Rep. Emory Dunahoo, R-Gillsville, and other lawmakers, would make several changes to Georgia’s insurance statutes, and would go far beyond roof shingles.

“If a loss requires replacement of items and the replaced items do not match in quality, color, or size, the insurer shall replace all items in the area to conform to a reasonably uniform appearance,” the bill reads. “The requirement applies to interior and exterior losses. The insured shall not bear any costs in excess of the applicable deductible.”

The measure is partly the result of homeowners being unable to match a discontinued type of shingle, according to news reports. The Atlas Chalet roofing, with unusually small shingle tabs, proved to be popular in the early 2000s. But the manufacturer stopped making it around 2010 after numerous complaints. The product is now the subject of class-action lawsuits.

The discontinuation meant that many homeowners were left with odd-looking, patchwork-quilt-type roof repairs when insurance policies wouldn’t pay for an entirely new roof.

“You can’t fix an Atlas Chalet shingle roof,” pointed out Tim Varga, president of the Georgia Association of Public Insurance Adjusters. “You can’t use a discontinued product with a new product and consider it repaired right.”

A previous Georgia insurance commissioner, Ralph Hudgens, had urged insurance carriers to go ahead and provide for full replacement on roofs. But the current commissioner, John King, has opposed HB 1310, saying it could lead to higher insurance rates, according to the local TV news report.

Floridians have seen multiple insurance rate increases in recent years, thanks in part to soaring roof claims, insurers have said.

Georgia HB 1310 has seen little action since it was introduced in the Georgia House of Representatives last month. Supporters gathered at the Capitol last week and urged Insurance Committee Chairman Eddie Lumsden to stop blocking the bill and schedule a hearing on it. Lumsden has said that regulators simply haven’t received that many complaints about insurers not replacing roofs.

The bill’s co-sponsor said he had heard from many constituents about the issue.

“We’re not saying everyone in the insurance business is a bad actor,” Dunahoo said. “When something happens we want to make sure we don’t fix a roof like a band-aid.”