What is an ACV policy?
This type of policy exists to give homeowners a cheaper insurance option—but it is cheaper because it only covers your roof for the first five years or so. The discount you get with an ACV policy is not worth it in the long run. Why? If you have an old roof and you are expecting insurance to cover the full cost and replace the roof after storm damage, this policy will not cover it.
Homeowners are often surprised when they find out they have this type of insurance coverage. The consequence is paying thousands of dollars out of pocket for a new roof. If the bill is too large, homeowners often can’t afford to fix the roof and they live with damage or try to patch it and deal with ongoing wear-and-tear issues.
Insurance agents don’t explain this policy well, resulting in customers who don’t know what kind of insurance they are signing up for.
Don’t go for the lower insurance premium with an ACV basis. If a storm comes, you don’t want a big roofing bill. Storms are becoming more frequent in Iowa, so it is a good idea to review your policy today. With an ACV policy, you may think you have insurance, but you really don’t.
Carrie received wind and hail damage to her roof. After we inspected it, we used ITEL and sent in a sample product so we could get a report on when it was manufactured to see if there was a suitable product to do a patch. There wasn’t a suitable match. So once we got the report back, we passed it on to her insurance. Her insurance was going to pay her $8,000 for the repairs, but instead, with our help, they ended up paying her $42,000 to replace the whole roof.
One Church’s Story
When the church experienced storm damage, insurance said they were going to pay $26,000. Hopkins advocated on their behalf and got the estimate up to $166,000. Then Hopkins supplemented the estimate with all the things that were missing. In the end, the insurance company paid a total of $209,000.