We are hearing more and more from home owners that their insurance estimates are lacking and missing items in the estimate. Since I entered the world of insurance claims handling back in 1994 the entire process and the way the insurance companies look at a claim has completely changed. There was a time that a claim was customer centered, where they cared about what you thought and how your claim was handled through the entire process. Now, most companies could care less what you think or what you do, as long as you buy their policy. Speaking of policies, although, I am just a dumb contractor and not allowed by law to discuss coverage with an insurance company, I can at least post this: Be aware of what your policy includes, be sure to put in writing to your agent when you buy your policy that you want FULL Replacement cost on everything. The new trend of the insurance companies is to insert an amendment during a yearly renewal where they slip your roof into an ACV (Actual Cash Value) Policy. This means they will NOT PAY YOU THE FULL REPLACEMENT COST TO REPLACE YOUR ROOF!
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This practice is quickly becoming common place and accepted practice by many states and Departments of Insurance. Unfortunately, most legislatures and DOI’s are not paying attention to what is going on with the world of Property Insurance, sadly, to the detriment of their constituents. I am by no means an expert when it comes to coverage, however, I can tell you what I have seen happen to the industry since I first started handling insurance claims in 1994. I fear this trend will continue unless the end users, Policy Holders, wake up and start looking for better coverage. Many agents have no clue that these policies contain a writer that converts your roof into an ACV policy. As long as insurance companies are able to change your coverage without your knowledge, this trend will continue.
Please review your policy every year and please ensure that you have a Full Replacement Cost Policy on your entire home. Getting hit with a $4,000.00 deductible and then finding out that the $5,400.00 depreciation on your roof is non-recoverable will likely end your savings!
Best of Luck with your claim if you decide to handle on your own!