Homeowners Claim - ACV Roof Damage

[AnonInHOU]

Hi,

I recently purchased a home in December of 2016 and it's my first home and I'm sad to say I'm experiencing my first and very major homeowners claim already. About three weeks ago we had a large tree from our neighbors yard slam through our roof breaking the ridge support and coming all the way into our room. Everything in our attic including all the insulation came into our room ruining our master bed room and we had water leak over to our living room as well. The damage is in the $50-100k range.

The adjuster never came out, but instead is making his claim amount based on the mitigation company they sent out to do the cleanup, who would also like to do the restoration. I have other issues with this, but that's not my current greatest problem.

Because this damage occurred during a storm they are classifying this as "wind" damage. My policy has a ACV on the roof in the event of "wind" or "hail" damage. So they're giving $26,000 to replace the roof which is a full roof replacement and rebuild of the roof structure that was damaged. The roof is about 17 years old and they're holding back $2600 as depreciation that is non-recoverable from that amount. So in all, I'm losing my deductible which is $2200 + $2600 in the depreciation of the roof, which makes the whole process rather painful.

I can certainly understand why the insurance companies would protect themselves on depreciation of roofs from wind/hail, but in this situation, the damage came from a tree that broke through the roof. It doesn't seem right to me, but maybe I don't have a leg to stand on.

Do I need to suck it up and accept the non-recoverable depreciation for what it is?

 

[VolAgent]

Judging by your username, I am guessing you are in Houston? Perhaps you should see if there are policies available that are not ACV due to wind or hail damage. It is a coastal area, so companies typically have more restrictive coverage on wind damage and it appears hail as well. Obviously you will have to wait until after the roof is replaced.

As far as being classified wind damage, that is correct. The tree falling was caused by the wind. I'm assuming it fell during a storm? So yes, the actual damage was from the tree, but the cause was from the wind and that is what determines how coverage applies. Now, if there was another reason the tree fell, that could change things.

You suggest you are unhappy with the mitigation company. You can always get another roofer to handle the repairs to your roof and have them do an estimate as well.

You mentioned the roof was 17 years old. If it was standard asphalt shingles, they were pretty much at the end of their life, particularly in a hot climate like Houston. I completely understand the pain of a large, unanticipated expense, at least insurance is helping versus you paying completely out of pocket.

 

[AnonInHOU]

Yep, I'm in Houston.

Yes it fell during a storm, but how could one say it wasn't lightening or natural decay that caused it to fall? The tree snapped at the base. As far as I could tell it didn't have full growth around the base any longer and it lost support enough on one side. One way or another it was going to come crashing down, storm or no storm.

It was a tall pine with branches mostly towards the top, but they were live branches.

This is a big lesson for me in homeowners insurance policies and what it all means. Before this happened I really couldn't tell you what an ACV policy is. I don't think most homeowners know what recoverable vs non-recoverable depreciation is.

Like you said, at least I'm not paying $60k out of pocket, but it is painful and unexpected.

 

[VolAgent]

They are pretty good at determining cause. Was there evidence of a lightning strike?

Now, depending on state law, if the tree was dead or diseased then your neighbor may be liable. I doubt it as insurance companies do love it when someone is liable so they typically look for it.

But yes, it does sound like you learned an important lesson the hard way. The cheapest policy is not necessarily the best. Often a quote or policy that is significantly cheaper is missing something. It is unfortunate that you had to find it out this way.

 

[AnonInHOU]

I don't know that there was any determination done at all. The insurance adjuster never came out. He has based his entire estimate of damages off the mitigation company that came out that they use frequently.

It seems from what I've read, you have to put the tree owner on notice prior to the incident to have any recourse with them.

It wasn't the most expensive policy, but it wasn't the cheapest policy for sure. It's with a carrier that has one of the better reputations.

 

[VolAgent]

I have no idea about the laws of Texas, so I won't comment on what is required or not concerning dead or diseased trees.

I would definitely speak with the agent. If you feel that something else was the cause, then maybe something can be done.

To be frank, lightning sounds like a red herring. I feel you would have mentioned lightning immediately were that the case. If you were asleep it would have woken you from a dead sleep and your neighbors would have been telling you about it if you were away from home when it happened. It is possible, but I really feel like you are stretching on this one.

I will say again, I am sorry that you are going through this. It sounds like a complete mess and a very frustrating experience for you.

 

[AnonInHOU]

I wasn't home when it happened. I don't know that it was or wasn't lightning, just think it's odd that it the cause gets pinned on wind. It probably wasn't lightning although I wouldn't know what to look for.

From what I saw, the base of the tree couldn't support itself anymore because had lost growth around the full radius. But then again, I'm not a tree expert.

I'll talk to the insurance company.

 

[InsCommentary]

It depends on what the "ACV" endorsement says. Are they applying the depreciation only to the roof surfacing materials/shingles or the entire roof repair?

How strong was the wind? Was that the only cause of loss?

 

[AnonInHOU]

It depends on what the "ACV" endorsement says. Are they applying the depreciation only to the roof surfacing materials/shingles or the entire roof repair?

How strong was the wind? Was that the only cause of loss?

That's a really good question and thanks for asking. The ACV loss is limited to "roof surfacing." The non-recoverable depreciation on the roof is 94% allocated to shingles and the balance in flashing, drip edge, etc. All other roof repairs such as fixing structural and redecking, those line items have zero depreciation.

As far as how strong the wind, I wasn't at the home at the time and my wife was asleep. There was a good sized storm that rolled through the area. I'd say decay of the tree played a good role, although it probably wasn't apparent to the owners of the tree prior to the storm. If it had not come down in this storm it would have come down on it's own or in another storm.

So now, lets say they gave me ACV of $10k on the roof surface discussed above, if I can find someone who can complete and bill me appropriately for that portion of the roofing job for $10k or less, then I'd be out $0 with respect to the depreciation?

Obviously I don't want to defraud anyone and I'm curious if this is a legitimate way I can avoid incurring depreciation.

 

[InsCommentary]

If they just cut you a check, you can likely make any deal you want to.