As of May 8, 2017, Colorado had $1.5 Billion dollars in claims for hail damage.  

After four years of very large hail storms indicate this weather pattern is the new normal. This history of claims has initiated a change in deductibles. Starting next week the new business requirement for wind/hail policies will be a $5,000 deductible. However, we have good news. Rates should be an average of $350 lower annually. The process of determining the actual cash value of a building component or contents item is an integral portion of the adjustment or appraisal of a loss. Depreciation is the reduction of the value of a product based on factors including use, age, and type of product. Replacement cost value (RCV) is a product at 100 percent, with no use or diminished life span. Actual cash value (ACV) is the use (or life left) of a product after reduction for depreciation. For example, a shingle roof with a prescribed 30-year life span (in a perfect world) would be depreciated by 50 percent after 15 years, therefore if the replacement cost value of that shingle roof while new was $300 per square, when faced with the depreciation of 50 percent, would have a depreciated value (ACV) of $150. The original policies were always written as ACV-only policies. However, in modern times consumers have demanded and received endorsements to their policies, making them replacement cost policies. In most occasions, during an insured loss an estimate or appraisal will be written based on the full, like-new replacement cost of all damaged items and then factored by the percentage of use (or depreciation). When the repairs are affected, typically the withheld depreciation is payable and due.  

• We recommend policy holders elect ACV coverage if their roof is less than 6 years old.
• Select $5,000 deductible if the roof is over 7 years old (in most cases this is the best choice).
• Existing businesses will not be required to change wind/hail deductibles.                                 

                          As a general note for wind/hail claims, companies have different timelines for when you can submit a claim:  

• Progressive still allows two years to file wind/hail claims.
• Safeco and Travelers allow only one year to file wind/hail claim.
• MetLife allows only 6 months to turn in wind/hail claim.  

  What does this mean for Coloradans? Roof damage due to wind/hail is a common expense that should be considered as a part of a home and business owner’s expenses.   Keeping you protected,   Rick   All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial, workers compensation, and much more!   Call us today for a free quote at (303) 932-1700