We're prone to hailstorms here. Have had two separate instances in the past where hail damaged our roofs. In both those cases, insurance paid to replace the roofs. First time, just gave me a check for complete amount of replacement. Second time, gave 75% check and final 25% when roof was actually replaced. Had a hail storm this summer. Adjuster confirmed hail damage. Except, this time he said check would be for depreciated value of the roof, not for roof replacement. Same company every time. Anyone familiar with these practices? Seems to me that insurance company is liable for roof replacement not depreciated value of the roof. Even offering the depreciated value of the roof, they are proposing a check for 75% of depreciated value with 25% remaining paid when roof is replaced. The depreciation is substantial, over 50% of the cost of roof replacement. I think they're trying to pull a fast one.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

probably depends on what type of coverage you have. Do you have "replacement cost" coverage or something else?

Replacement cost coverage as far as I know unless there was a fine print change in the policy I was not informed about or didn't read.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

If you have replacement cost coverage, then they better be able to show you in your policy where it says they get to discount for age. Replacement cost means just that- whatever it costs to replace it. If they try otherwise, call your state insurance commissioner or whatever he is called.

You may have to show proof you had the roof replaced the second time if that's what they're depreciating. I had a neighbor who collected a claim, didn't fix it, then tried to collect on a subsequent storm. He had some deal with a much smaller check or no check. I don't think the 75 up front/25 upon proof is too unusual. My last claim was 80/20, the remaining "20" was variable based upon whatever the 80 didn't pay so long as I used a contractor approved by the insurance company, so as to meet but not exceed the actual outlay; i.e. I'd be "made whole" but not profit.

You may want to research recent changes to your state laws. They may have changed the law while leaving your policy language the same, e.g. "'replacement' for policies in this state means depreciated value effective for storm damage after 2010...". There was a flurry of changes in recent years after the bad hurricane seasons and the major companies had to pay out major claims. Insurance companies changed policies, or threatened to pull out of states unless they changed the coverage laws. State legislatures largely complied under pressure of having no competition for insurance carriers in the state.

I had the roofs replaced. I think I can prove it.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

I agree with Yak. Looks like they're simply trying to assure that you use the money to fix the roof rather than take a vacation to the Caribbean.

__________________

Current:
2014 VW Tiguan SEL 4Motion 43,000 miles.

2016 Hyundai Santa Fe Sport (wife's).

Past:
2006 Jetta TDI 135,970 miles. Sold Nov. '13.
1995 E-320 Special Edition. 220,200 miles. Sold Sept. '07.
1987 190-E 16 valve. 153,000 miles. Sold Feb. '06.
1980 300-D 225,000 miles. Donated to the National Kidney Foundation.
1980 240-D manual, 297,500 miles. Totaled by inattentive driver.

They assure you fix the roof by only paying a portion of the claim until the roof is fixed, then they pay the rest. However, now (unlike in the past) the total claim is only for the depreciated value of the roof and not for replacement. I found the letter from the insurance company from one of the prior claims where it states outright they are paying for the replacement cost of the roof. I've never been notified of any changes to the policy since that letter was sent.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

Check your policy and required coverage in your state. Also carefully check the description of your home.

A major insurer in Texas changed software a few years back. I noticed a small bump one year, then a large jump the next. The new software defaulted to attached garages as a description since they're now more common. I was never notified that my house's description changed because the computer didn't think it had. An attached garage raises the risk to the overall structure and the rates also went up. I corrected it back to a detached garage and my rates when back down.

It's possible that they never updated the age of your roof in the description since it was last repaired -- this may be a factor if you have an ACV policy and not a replacement policy.

An example from Colorado, Texas has similar language but this one specifically cites a roof:



Three ways to insure the structure of your home:

1. Replacement Cost. Insurance that pays the policyholder the cost of replacing the damaged property without deduction for depreciation, but limited to a maximum dollar amount.
2. Extended Replacement Cost. An extended replacement cost policy, one that covers costs up to a certain percentage over the limit (usually 20%). This gives you protection against such things as a sudden increase in construction costs.
3. Actual Cash Value. This covers the cost to replace your home minus depreciation costs for age and use. For example, if the life expectancy of your roof is 20 years and your roof is 15 years old, the cost to replace it in today’s marketplace is going to be much higher than its actual cash value.

Specific terms in homeowners policies can be weird. I lost a large tree to a windstorm. I recalled something about it in the policy, so went back and looked. Since the tree didn't damage the structure nothing was covered. Had the tree damaged the structure, they would have fixed the damage AND repaired the landscaping to include tree removal and replanting.

The tree had no insurance value unless and until it damaged the house. In San Antonio, a nice live oak can add $10-15K to property values.

It pays to know exactly what's in the policy.

I relooked at the paperwork from the last hail damage claim. It clearly states that we were covered for full replacement costs so if it has changed since then it was done without our knowledge since we have never initiated any changes to the policy.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

"Adjuster"
This is CODE for Thief,employed by the Insurer to "Beat Down" your claim.

Time for a call to the State Insurance Commissioner and the State Attorney
General.

Insurers will do whatever they can get away with.
When was the last time you heard of anyone involved with an Insurer,
Convicted of Fraud against the Insured?
(Answer: NEVER!!!!!!!)

__________________
'84 300SD sold
124.128

We recently had sump pump failure in our basement and had to have a company come to our house to remove water and treat for any mold growth. Their bill was a whopping $2800, which is the "we're available to come tomorrow while every other company in town is already booked" price. A few days later Travelers Insurance arrived, looked at the receipt and our house, and assessed our damage at over $5,000 and cut us a check for that amount, the full amount of our coverage. Pretty simple. We'll use the remaining funds to pay for the new sump pump and cover any damages to household goods damaged.

__________________

Current:
2014 VW Tiguan SEL 4Motion 43,000 miles.

2016 Hyundai Santa Fe Sport (wife's).

Past:
2006 Jetta TDI 135,970 miles. Sold Nov. '13.
1995 E-320 Special Edition. 220,200 miles. Sold Sept. '07.
1987 190-E 16 valve. 153,000 miles. Sold Feb. '06.
1980 300-D 225,000 miles. Donated to the National Kidney Foundation.
1980 240-D manual, 297,500 miles. Totaled by inattentive driver.

I thought the replacement cost part of insurance was only for content, not structure.

I have State Farm out here in TX and I have gone through 3 roofs in 13 years. Each time I get an estimate and SF pays it less 1% deductible. Most of the roofers know this so they usually jack the price up by 1% of the house value so the roof is free.

__________________
Sent from an agnostic abacus

2014 C250 21,XXX my new DD ** 2013 GLK 350 18,000 Wife's new DD**

- With out god, life is everything.
- God is an ever receding pocket of scientific ignorance that's getting smaller and smaller as time moves on..." Neil DeGrasse Tyson
- You can pray for me, I'll think for you.
- When you understand why you dismiss all the other possible gods, you will understand why I dismiss yours.

Replacement cost definitely applies to structure. In fact, my agent was in my house a week ago and explicitly stated that the policy covered the replacement of the house even if the replacement cost was higher than the $$ value of the house listed on the policy.

__________________
1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13