Homeowners Insurance Roofing Coverage

[InsuranceAgent411]

For the personal lines agents who service/sell coverage how are you explaining and selling a home product that does not offer full replacement value coverage on the roof? More and more carriers are offering this type of coverage as an option however I am not having much luck selling it. Feedback would be appreciated!

 

[Al3x Lee]

For the personal lines agents who service/sell coverage how are you explaining and selling a home product that does not offer full replacement value coverage on the roof? More and more carriers are offering this type of coverage as an option however I am not having much luck selling it. Feedback would be appreciated!

I do primarily commercial, but I'm curious. What is the average cost difference between full replacement and I assume the other option is ACV?

 

[adjusterjack]

Well, Tinman, you're contradicting yourself.

"Does not offer" and "offers as an option" are two different things.

The industry standard homeowners policy is the HO-3 or its equivalent which automatically includes Replacement Cost on the dwelling (including the roof).

Insurance companies may mandate ACV coverage if the applicant has had roof damage claims or whose roof is in bad shape.

Some companies, particularly those that insure high risk buildings (Excess and Surplus lines) may offer an ACV policy with an option to buy Replacement Cost at a much higher premium.

More and more carriers are offering this type of coverage as an option

What, EXACTLY, are they offering? HO-1 at ACV? Something else? Be specific with form numbers and endorsement numbers.

 

[Allen Trent]

Well, Tinman, you're contradicting yourself.

"Does not offer" and "offers as an option" are two different things.

The industry standard homeowners policy is the HO-3 or its equivalent which automatically includes Replacement Cost on the dwelling (including the roof).

Insurance companies may mandate ACV coverage if the applicant has had roof damage claims or whose roof is in bad shape.

Some companies, particularly those that insure high risk buildings (Excess and Surplus lines) may offer an ACV policy with an option to buy Replacement Cost at a much higher premium.



What, EXACTLY, are they offering? HO-1 at ACV? Something else? Be specific with form numbers and endorsement numbers.

No, more & more HO 3 are having policy language to list roofing as a depreciated iten & have clauses about siding/roofing matching on partial claims. All being driven by Roofing companies door knocking very nice neighborhoods on houses 15-20 years old already in need of new roof. Same roofing companies won't even give you estimates if you are not using an insurance carrier to pay & definitely not prospecting in old inner city. Usually happens after very minor hail storms, not the major hail storms where severe damage occurred. During covid, it was even easier for the roofing companies as the claims adjusters we're not going to the property to personally inspect as much

 

[adjusterjack]

No, more & more HO 3 are having policy language to list roofing as a depreciated iten & have clauses about siding/roofing matching on partial claims. All being driven by Roofing companies door knocking very nice neighborhoods on houses 15-20 years old already in need of new roof.

It's about time. I've paid many a claim to replace a roof that had outlived itself and was waiting for a convenient storm to tear off a majority of shingles.

As a result of your comment I did a search and found several samples of the ACV roof endorsements used by insurance companies.

I'm guessing they will come as a big shock to people who don't read their policies.

 

[Allen Trent]

It's about time. I've paid many a claim to replace a roof that had outlived itself and was waiting for a convenient storm to tear off a majority of shingles.

As a result of your comment I did a search and found several samples of the ACV roof endorsements used by insurance companies.

I'm guessing they will come as a big shock to people who don't read their policies.

It really is how things like roof, carpet should be handled similar to how car claims are handled for items that have shorter life spans & detioration

 

[MichaelRS]

I tend to agree with the sentiments here. You can replace shingles without replacing the roof. The best compromise I see on this one is offering ACV on roofs over a certain age - say half the roof warranty. You prove it's a newer roof and you get full coverage, otherwise it's either depreciated or only the damaged part is replaced.

As was mentioned, too many folks get new roofs that they needed to replace it anyway. I remember one client saying "Turn it in, worst they can say is no." She ended up getting a brand new roof that she was going to have to pay for out of pocket. She literally had signed for it to be replaced and had a storm come through a short time before the work was to be done.

There has to be a way for it to be balanced out or carriers end up reducing your coverage. Look at Florida. Carriers are going out of business or bowing out because people (homeowners, contractors, lawyers, etc) are unreasonable and greedy.

Claims cause coverage to be constricted and then you have to buy 15 endorsements to get it back to where it needs to be (I'm talking to you Travelers). Just sell a solid, rounded policy and call it a day. Back it up with claims adjusters and counsel that don't let public adjusters and [some flea bag] attorneys push them around.

 

[adjusterjack]

Back it up with claims adjusters and counsel that don't let public adjusters and [some flea bag] attorneys push them around.

Florida was my property claims territory for 7 years until I retired. The scamming public adjusters were the bane of my existence.

It's not the claims adjusters that get pushed around, it's the claims executives that run scared every time a public adjuster or attorney sends a "notice of civil remedy."

Civil Remedy

The Florida DFS is ultra consumer friendly.

 

[marindependent]

If it is less than the optimal coverage that you can secure or what is common - Send over the Endorsment or special policy wording. Include it in the lump of paperwork that you have them sign electronically.

State in your email that either because you have request this or because we are unable to find the better option - here is what is available.

 

[thomasm]

I just tell them point blank. The days of getting your 25 year old roof replaced for free are over! Unless you want what's happening in FL to happen here too! Then I explain the roof systems payments schedule.