State Farm Roof Depreciation

The company warns its employees that granular loss occurs naturally during the weathering process and that granular loss itself is not covered since it does not affect the watertight integrity of the roof.

State farm roof depreciation.

Th e operation guide provides direction to claims handlers for handling roof claims that involve damage from wind or hail. State farm has a convenient online claim reporting process for roof claims as well as helpful information about choosing a qualified roof contractor. The answer to that question revolves around roof insurance claim depreciation. Homeowners filing claims are often confused by the forms inspections and dealing with insurance agents.

The replacement cost of the roof and the expected lifetime of the roof for example the average cost to replace a roof is 10 000 and asphalt roofs generally have a lifespan of 15 years. When a claims adjuster looks at a roof he will consider the condition of the roof as well as its age. The insurance adjuster depreciated the roof 50 an arbitrary number based on its age so the actual cash value of the roof is now 5 000. In 2012 hail and wind damage cost state farm insurance more than 3 9 billion.

Insurance claims for roofs were a part of that exorbitant figure. How is depreciation on a roof calculated. Let s say your roof is supposed to last 20 years and it s 5 years old when damaged. We value your privacy.

I came across a trial court order which discussed state farm s operation guideline for handling hail and wind damage to composition roofs. Generally the older your roof the higher the amount depreciated or not covered under your policy. The recoverable depreciation also happens to be 5 000 10 000 replacement value less 5 000 actual cash value. Calculating depreciation begins with two factors.

The roof depreciates in value 5 for every year or 25 in this case. Calculating depreciation based on age is straightforward. State farm has issued its own operation guidelines directing its claims handlers on when hail and wind damage to composition roofs may be covered. Actual cash value acv is when your insurance company only pays for what your roof was worth at the time you filed.

If your policy is for rcv your insurance company will pay the replacement cost value of your roof at the time of a covered loss.