Legends Roofing Blog

Allstate's changing their policies

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Allstate Insurance has started implementing a new policy where they will not cover the full replacement cost of replacing your roof if its older then 10 yrs. Allstate started this program, called House & Home, in Oklahoma and is planning on extending it nationwide over the next three years.

If the roof is over 10 yrs. old, Allstate will only pay the "actual cash value." The actual cash value, also known as market value, is the replacement cost - depreciation. For example,if you were to sell a 3 year old used bike on Craiglist's List you would sell it for less then what you paid for it because its used (or depreciated). No one would buy a used bike for the same price as a new bike. The price of the new bike is the replacement cost. The price you sell it for is the actual cash value (how much the bike sold for in the marketplace). Allstate is going to have the customer cover the cost of the depreciation.

In order for Allstate customer's to be able to replace their roof, they will have to pay "out of pocket" a significant amount more. Their cost will be depreciation plus their deductible. Many people will not be able to afford to replace their damaged roofs.

For more information on the policy... 

http://www.chicagobusiness.com/article/20120202/NEWS01/120209925/allstate-looks-to-make-homeowners-pay-more-for-roof-repairs