Some Insurers Incorrect on Fortified Roofs Endorsements, Kentucky Commissioner Says

The Kentucky insurance commissioner is reminding property insurers they have just three weeks to resubmit homeowner policy endorsements that comply with state law on coverage for Fortified roofs.

“Upon review, several FORTIFIED endorsement filings have been found to contain language which violates KRS 304.13-346,” Commissioner Sharon Clark wrote in a bulletin posted last week.

Clark explained that House Bill 256, signed into law in 2024, requires HO carriers to offer optional endorsements that will cover the cost, in claims payments, of upgrading homes to the Fortified standard developed by the Insurance Institute for Business and Home Safety. The widely recognized standard has been shown to reduce roof and other damage caused by high winds, with the use of beefed-up secondary water barriers, roof connections and other measures.

Insurers were required to start offering the endorsements in March of this year. The law requires coverage for “the cost to upgrade” single-family homes.

Some insurers, however, have filed endorsements that add exclusion that goes beyond what the law allows. Examples include:

• “We will not pay for: loss if your dwelling or other structures do not meet the IBHS requirements for foundation, roof rafter framing, roof sheathing, or roof decking.”
• “We will not pay for: the increased costs for a more expensive roof material than your existing roof material.”

Under the 2024 law, “insurers shall not exclude mitigation requirements for roof rafter framing, roof sheathing, or roof decking. Additionally, insurers shall not issue FORTIFIED endorsements to homes with foundations ineligible for FORTIFIED designation,” the bulletin explains.

Carriers must not exclude the additional costs of more expensive roof materials if those materials are required to reach the Fortified designation. Insurers concerned with the costs associated with FORTIFIED mitigation should instead price the product in accordance with the risk, Clark noted.

Those insurance companies that have submitted incorrect endorsements should withdraw them and submit new filings by Nov. 1. Questions can be sent via email to DOI.PropertyCasualty@ky.gov.

“Admitted carriers without an approved FORTIFIED endorsement may be subject to administrative action including but not limited to civil penalties,” the bulletin said.

Topics Carriers