Big Blue NY HO Policy-ACV Roof

[IAfreedom]

Thats right...No kidding. Big Blue has come out with a new HO policy for NY...maybe other states..?? ( the only one the agents are able to write I believe )

From day 1 your roof is depriciated, however, you can buy into a full replacement roof for the first 15 years of roof life.

However, if your roof is 16 years old and up....I believe they pay 55% of the repair/replacement ( no buy in option ) and of course that number goes lower as the roof gets older.

It does not matter if you have a 40 year architechual roof or not!

Keep this in mind as you replace All HO policies or you quote against them...Your potential customer should have full disclosure before purchasing an All HO policy...wouldn't you agree?

You might also guess that, as some would descibe them as the "dirtiest agents in the business" might not bring this important topic up. So you'll have to. ​

 

[Accelerated]

In NC, there has been a new endorsement applied to all renewals for a couple of carriers over the last couple of years, stating that if the roof has exceeded 75% of it's anticipated use life, they will only pay ACV (at whatever the individual carrier standards of maximum depreciation happen to be.. some do 50%, some 75%).

I happen to agree with the concept, at least to the degree that it is being applied in the Carolina's (the NY model that you described seems excessive) simply because in 2010 and 2011 during the hail events across the Carolina's, I replaced thousands of 20+ year old roofs that were built with 20 year shingles.

Insurance is supposed to be for sudden and accidental losses, not losses sustained because your roof was worn out (due to deferred maintenance if it was 25 years old and constructed with 20 year shingles) and did not perform like a new one during a hail storm.

 

[Sales71]

Thats right...No kidding. Big Blue has come out with a new HO policy for NY...maybe other states..?? ( the only one the agents are able to write I believe )

From day 1 your roof is depriciated, however, you can buy into a full replacement roof for the first 15 years of roof life.​

However, if your roof is 16 years old and up....I believe they pay 55% of the repair/replacement ( no buy in option ) and of course that number goes lower as the roof gets older.​

It does not matter if you have a 40 year architechual roof or not!​

Keep this in mind as you replace All HO policies or you quote against them...Your potential customer should have full disclosure before purchasing an All HO policy...wouldn't you agree?​

You might also guess that, as some would descibe them as the "dirtiest agents in the business" might not bring this important topic up. So you'll have to. ​

Good point. How are they doing the inspection to determine the age of the roof.


Some IA companies are going with the ACV on the roof as well.

 

[IAfreedom]

I believe only the 1 ( standard HO ) company is going ACV on roofs...I would expect a few to follow.

Inspections--from what Ive been told--are done by a vendor-third party...they grade it a 1 or 2 or 3 ( worst )..In order to be allowed the buy in option for yrs 1-15 you need to grade a 1....not sure what "standars" they are using.

A bigger concern for me is that in many cases the client will not have disclosure of this prior to or at the sale....they will have it 2 weeks later in the policy jacket---which everybody reads...Right..?

 

[nyc2phi]

I see new homeowner policy billboards all over here in PA for AllState.

 

[IAfreedom]

If the PA home product is called house & home...or ALL vehicle & property then its prob the same or close.

I dont see mortgage co's liking this too much--They usually DEMAND replacement Value/Coverage....How will they like the $200K loan they have on a house only having 1/2 of a roof bc the client cant come up with $8K..?

Not seeing this end well for anyone....except the competition of course.

 

[nyc2phi]

Yeah also have to watch out for the "cyclone deductible" minium of 1% or 2% and your offering 1K. I get business from people all the time that didin't know they had to pay so much out of pocket for a hurricane or tornado claim.

 

[IAfreedom]

Re: Big Blue NY HO Policy-ACV Roof--OK Tornados

Any Oklahoma ALLshate agents--or others--want to comment on the OK.."House & Home " product.....looks like ACV on many roofs to me!!!

Hows that going to end...?