Interesting, Insurance company to determin the ACV of the roof, if they knew how to do it would be fine, but not all areas in the country can apply the same formular. cold vs heat. A 20 yr roof is and can last longer depending on the weather.A 20 year roof could go to 25 years depending on how much exposure it has to the elements. Lets ask the real question, would this reduce prem, or would the cost keep going up.
Just as all roofs are not the same, not all insurers are.
Even when insurers want to do the right thing by their customers,
they may not either have the expertise in house, or the willingness
to hire the proper expertise. On a very small loss, it may not be
a big deal, but on a large loss it’s important to be sure as the
property owner, that YOU know what your rights are, that YOU get a
expert who you are confident knows what’s what, and who’s opinion will hold up under cross examination.
If you know your rights, you will tend to collect more than the person who doesn’t. Three professionals who can assist you are:
your agent (if the agent is any good, and cares to help you), a
Public Adjuster (though they may not be willing to help unless the
case is over a certain dollar size), and an attorney (who is already experienced with the specific type of case you have).
We read in trade press that something like 98% of first party insurance claims are settled to the policyholder’s satisfaction.
And most claims are settled directly by insurer staff adjusters or
outside hired adjusters. These people are not Santa Claus, and
to make it even more confusing, many legal decisions that impact
what you can collect are not even noted in your insurance policy:
rather there are legal precidents set in other people’s court cases. Adjusters are supposed to be trained, and aware of these
changing cases and apply them fairly. The impression we get from
trade press again, is that state regulators market conduct surveys
indicate insurers do a pretty good job. When they don’t, they get fined.
If you wondered will an ACV policy cost less than a Replacement Cost policy? The answer should obviously be yes it should, but
market conditions are highly variable, so the only way you can be
sure if you are not over paying is to check periodically.
Using a public adjuster or attorney will cost you out-of-pocket and are usually not good ideas on a first-party claim. Public adjusters get paid a percentage of the claim, so it is in their best interests to try to jack the dollar value up, making the claim process long and painful and more expensive to the carrier in the long-run. Most attorneys know nothing about insurance coverage and bill you by the hour. Again, extending the life of the claim and increasing your out-of-pocket expense. Your best bet is a good broker. There are tons of us out there.
Farmers Insurance does this. Even though I had replacement cost on the policy for contents, which I thought was for everything, they gave me a check for pennies on the dollar.
As stated in the article, it is common to be paid ACV until the damages (both contents and building) are replaced. Once you have replaced the covered loss with like kind and quality, you will be compensated with an RCV payment (given you have replacement cost).
Additionally, yes a roof is considered building value not contents. Either way, the principles for ACV and RCV work the same.
In answer to Bob…it is common practice for insurers to use roof inspectors to determine the condition of the roof. They are licensed professionals, similar to how other contractors are licensed, which involves specific training for their field, and is regulated by a governing body. This gives an objective (or as close to one as possible) description of the roof. Not all insurers do this, it would be good to ask your insurance company if they would.
One might make a note, replacement cost policies have a extra premium attached to the total premium. ACV is standard and very basic. Both coverages can be applied to contents, structure and of course the roof. Bottom line, you pay for the coverage if you chose to have it.
Steve
As a risk manager, I understand that windstorm damage is now the biggest concern of insurers. Not Hurricans but streight line and tornado types. If the company wants to charge more for RC they should. Let the market decide, Not TN legislators.
I am an agent in TN and have been informed that last week AllState, whom I believe is either the 2nd or 3rd largest home insurer in the state, is now doing ACV on roofs. Farmers or Farm Bureau had also changed to this a month or so earlier. These are horrible policies for consumers. State Farm is mandating 1% policy deductibles on homes which can be really tough for many homeowners. No doubt the wind/hail roof problems have insurors in the state bleeding for the past 3-5 years and with some of the bigger companies doing this I expect more to follow suit. Sadly most consumers will not realize or understand these shifts in coverage until they file the claim.
Interesting, Insurance company to determin the ACV of the roof, if they knew how to do it would be fine, but not all areas in the country can apply the same formular. cold vs heat. A 20 yr roof is and can last longer depending on the weather.A 20 year roof could go to 25 years depending on how much exposure it has to the elements. Lets ask the real question, would this reduce prem, or would the cost keep going up.
Just as all roofs are not the same, not all insurers are.
Even when insurers want to do the right thing by their customers,
they may not either have the expertise in house, or the willingness
to hire the proper expertise. On a very small loss, it may not be
a big deal, but on a large loss it’s important to be sure as the
property owner, that YOU know what your rights are, that YOU get a
expert who you are confident knows what’s what, and who’s opinion will hold up under cross examination.
If you know your rights, you will tend to collect more than the person who doesn’t. Three professionals who can assist you are:
your agent (if the agent is any good, and cares to help you), a
Public Adjuster (though they may not be willing to help unless the
case is over a certain dollar size), and an attorney (who is already experienced with the specific type of case you have).
We read in trade press that something like 98% of first party insurance claims are settled to the policyholder’s satisfaction.
And most claims are settled directly by insurer staff adjusters or
outside hired adjusters. These people are not Santa Claus, and
to make it even more confusing, many legal decisions that impact
what you can collect are not even noted in your insurance policy:
rather there are legal precidents set in other people’s court cases. Adjusters are supposed to be trained, and aware of these
changing cases and apply them fairly. The impression we get from
trade press again, is that state regulators market conduct surveys
indicate insurers do a pretty good job. When they don’t, they get fined.
If you wondered will an ACV policy cost less than a Replacement Cost policy? The answer should obviously be yes it should, but
market conditions are highly variable, so the only way you can be
sure if you are not over paying is to check periodically.
Best wishes from CA.
Using a public adjuster or attorney will cost you out-of-pocket and are usually not good ideas on a first-party claim. Public adjusters get paid a percentage of the claim, so it is in their best interests to try to jack the dollar value up, making the claim process long and painful and more expensive to the carrier in the long-run. Most attorneys know nothing about insurance coverage and bill you by the hour. Again, extending the life of the claim and increasing your out-of-pocket expense. Your best bet is a good broker. There are tons of us out there.
Farmers Insurance does this. Even though I had replacement cost on the policy for contents, which I thought was for everything, they gave me a check for pennies on the dollar.
a roof is not contents since its attached to the structure, correct?
As stated in the article, it is common to be paid ACV until the damages (both contents and building) are replaced. Once you have replaced the covered loss with like kind and quality, you will be compensated with an RCV payment (given you have replacement cost).
Additionally, yes a roof is considered building value not contents. Either way, the principles for ACV and RCV work the same.
In answer to Bob…it is common practice for insurers to use roof inspectors to determine the condition of the roof. They are licensed professionals, similar to how other contractors are licensed, which involves specific training for their field, and is regulated by a governing body. This gives an objective (or as close to one as possible) description of the roof. Not all insurers do this, it would be good to ask your insurance company if they would.
One might make a note, replacement cost policies have a extra premium attached to the total premium. ACV is standard and very basic. Both coverages can be applied to contents, structure and of course the roof. Bottom line, you pay for the coverage if you chose to have it.
Steve
As a risk manager, I understand that windstorm damage is now the biggest concern of insurers. Not Hurricans but streight line and tornado types. If the company wants to charge more for RC they should. Let the market decide, Not TN legislators.
Jack, the market is deciding. The regulators are just informing the consumer about the changes.
I am an agent in TN and have been informed that last week AllState, whom I believe is either the 2nd or 3rd largest home insurer in the state, is now doing ACV on roofs. Farmers or Farm Bureau had also changed to this a month or so earlier. These are horrible policies for consumers. State Farm is mandating 1% policy deductibles on homes which can be really tough for many homeowners. No doubt the wind/hail roof problems have insurors in the state bleeding for the past 3-5 years and with some of the bigger companies doing this I expect more to follow suit. Sadly most consumers will not realize or understand these shifts in coverage until they file the claim.
Looks like you’ll be rolling a book of business, Fred.