Insurance Companies changing the way they pay on roof and storm damage claims
Effective October 1, 2012, Tennessee Farmers Mutual Insurance Company (Farm Bureau) will settle all roof claims for actual cash value rather than full replacement value for all new and renewal business. In addition, Farm Bureau will now require that all hail losses be reported within one year from the date the hail damage occurred for all property policies.
Farm Bureau will add the new endorsement to all policies regardless of the age or condition of the roof. Previously, Farm Bureau had only been adding ACV endorsements to policies on an individual basis where it was determined that the roof’s condition was such that the policy would be cancelled or not renewed without the AC V endorsement.
Allstate Insurance has also announced they will be adding the same endorsement and exclusions to all new and existing policies effective immediately
This change has been a topic of interest for several years in the General Assembly and it seems many insurance companies are seriously looking at this as one of the ways to cut their losses. Homeowners attempting to put insurance money back in their pocket by accepting the lowest bid, roofing companies offering consumers a “free roof” in aggressive marketing campaigns and the massive hail and wind losses Insurance Companies has suffered in recent years, have all been contributing factors to this new change in Home Owner Insurance Policies