Updates to Homeowners Policies Regarding Windstorms and Hail

Updates have been made to all homeowner and mobile homeowner policies regarding loss evaluation for roof surfacing damaged by windstorm or hail and are effective April 15, 2024.  

Actual Cash Value (ACV) will automatically be added to all Homeowner policies except for Personal Property renters and Unit Owners on the dwelling and other structures.  

What is ACV vs Replacement Cost?

• Actual Cash Value (ACV):
  • If you have a loss and your policy is endorsed with ACV the cost of replacing items minus depreciation will be paid. Depreciation is the decrease in value over time as things get older.  
• Replacement Cost
  • Pays full cost to replace property that is priced at equal value. Does not include a deductible for depreciation.

What is Changing with my Homeowners Policy?

• Current Policy:  
  • Composition/Asphalt roofs 20 years or older or metal roofs 30 years or older MUST have ACV
  • Roofs showing any wear, including but not limited to, curling/cupping/lifting/staining/worn shingles, or shingles showing granular loss MUST have ACV
  • No premium difference
• Updated Policy:
  • All homeowners policies– ACV endorsement will automatically be added to all policies except for Personal Property Only (Renters) and Unit-Owners
  • Will apply to the dwelling and all other structures
  • Will be a premium difference
  • Applies to roof only
  • Wind/Hail perils only 

Can ACV be removed from my Homeowners policy if I choose?

ACV can be removed if the following guidelines are met:

• Other than metal roof that is less than 10 years of age
• Metal roof that is less than 20 years of age
• Acceptable documentation is provided

Eligible Documentation for Replacement Cost:

• Contractor receipt
• Work permit
• Statements showing roof company payment
• Appraisal or real estate listing indicating roof year
• Home inspection indication roof year
• Receipt of materials

If you have other documentation to provide, it can be reviewed for eligibility.

As a reminder, this endorsement only applies to damage to the roof caused by windstorm or hail. 

New Windstorm/Hail Deductible:

This deductible is in addition to the Section I deductible.  

A new windstorm or hail deductible will apply to any loss caused by windstorm or hail. The new windstorm/hail deductible will match the policy deductible unless you would like to increase it for a reduction in premium. If your roof is damaged by anything other than windstorm/hail, then the policy deductible applies.  

To understand all new updates to homeowner policies, please schedule an appointment with our team.