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Roof Surface Loss Settlement Question with State Farm
I recently changed dwelling policies to State Farm and they include “Roof Surf Loss Settlement - ACV” in the forms, options, and endorsements section. This wasn't on my previous policy with Safeco. I asked if it could be removed and she said that the roof surfacing is added to all RDP and that it does indeed go off of the ACV minus depreciation. This could be a huge expense if I run into roof damage but it doesn't appear I can take it off (it comes with a $22 savings which I'd happily remove to have replacement cost). The rest of the insurance is all replacement cost. Anyone else run into this or know if this is normal? Thanks!
Quote from @Michelle Sobalvarro:
I recently changed dwelling policies to State Farm and they include “Roof Surf Loss Settlement - ACV” in the forms, options, and endorsements section. This wasn't on my previous policy with Safeco. I asked if it could be removed and she said that the roof surfacing is added to all RDP and that it does indeed go off of the ACV minus depreciation. This could be a huge expense if I run into roof damage but it doesn't appear I can take it off (it comes with a $22 savings which I'd happily remove to have replacement cost). The rest of the insurance is all replacement cost. Anyone else run into this or know if this is normal? Thanks!
How old is your roof? This is becoming more common but it's likely you could get full replacement cost elsewhere depending on the age. Sounds like you had it before with Safeco...why'd you switch?
Quote from @Owen Rosen:
Quote from @Michelle Sobalvarro:
I recently changed dwelling policies to State Farm and they include “Roof Surf Loss Settlement - ACV” in the forms, options, and endorsements section. This wasn't on my previous policy with Safeco. I asked if it could be removed and she said that the roof surfacing is added to all RDP and that it does indeed go off of the ACV minus depreciation. This could be a huge expense if I run into roof damage but it doesn't appear I can take it off (it comes with a $22 savings which I'd happily remove to have replacement cost). The rest of the insurance is all replacement cost. Anyone else run into this or know if this is normal? Thanks!
How old is your roof? This is becoming more common but it's likely you could get full replacement cost elsewhere depending on the age. Sounds like you had it before with Safeco...why'd you switch
@Owen Rosen Thanks for the reply. The roof is 7 years old. I switched insurance carriers because State Farm was less expensive (and perhaps this is one of the reasons why). Although from what I read, State Farm is rated highly for rental units. I suppose it's a matter of weighing options - looking at the potential increased cost of fixing/replacing a damaged roof at ACV verses paying a higher premium for an insurance policy that pays out replacement cost, and see which one makes more sense. It took me by surprise that on the new policy everything was replacement cost except for the roof. It sounds like it isn't that uncommon though.
Quote from @Michelle Sobalvarro:
Quote from @Owen Rosen:
Quote from @Michelle Sobalvarro:
I recently changed dwelling policies to State Farm and they include “Roof Surf Loss Settlement - ACV” in the forms, options, and endorsements section. This wasn't on my previous policy with Safeco. I asked if it could be removed and she said that the roof surfacing is added to all RDP and that it does indeed go off of the ACV minus depreciation. This could be a huge expense if I run into roof damage but it doesn't appear I can take it off (it comes with a $22 savings which I'd happily remove to have replacement cost). The rest of the insurance is all replacement cost. Anyone else run into this or know if this is normal? Thanks!
How old is your roof? This is becoming more common but it's likely you could get full replacement cost elsewhere depending on the age. Sounds like you had it before with Safeco...why'd you switch
@Owen Rosen Thanks for the reply. The roof is 7 years old. I switched insurance carriers because State Farm was less expensive (and perhaps this is one of the reasons why). Although from what I read, State Farm is rated highly for rental units. I suppose it's a matter of weighing options - looking at the potential increased cost of fixing/replacing a damaged roof at ACV verses paying a higher premium for an insurance policy that pays out replacement cost, and see which one makes more sense. It took me by surprise that on the new policy everything was replacement cost except for the roof. It sounds like it isn't that uncommon though.
For a 7 year old roof you should be able to find replacement cost coverage on your roof if you want it.
This is a really good example of why I always say insurance is not all created equal and it's important to have an agent that can/will intelligently explain policy provisions.
It sounds like you determined you had ACV on your roof on your own. Don't you find it a little odd that the agent who sold you the policy didn't mention it? That would concern me more than anything else.
I'd ALWAYS go through an Insurance Broker to obtain a new policy! And, ones that are out of state but can still write a policy where your at are usually the best option! :)
But yes, Ins companies are changing a LOT of things now. Many co's even pulling out of place like FL, TX, OK because of the repeated storms and continued claims. (our rates are going sky high!)
And the "norm" is not even close to what it used to be ... with many carriers going up to 1.5-2% Deductables for storm claims; or not writing policies for roofs older than 15yrs (some 8yrs!), etc etc etc...
If you'd have any questions about Roofing let me know and I'll be happy to help.
w/ J's Roofing - Richardson, TX
Thanks for the additional info @Jerry V.
Having ACV on roofs 10-15 years old is very close to being the new normal with many companies with others going to a percentage deductible for wind or hail damage
Thank you @Michael Norris, appreciate the insight.