Eventually, Allstate customers with roofs more than 10 years old won’t have the full cost of new roofs covered under their home insurance policies. Allstate’s House & Home program will pay the “actual cash value” of a roof that needs to be replaced if it’s older than 10 years. Bottom line: Homeowners will be responsible for expenses beyond the claim payout for an older damaged roof whose value has been depreciated.
“The program was launched in Oklahoma in October. Allstate plans to gradually expand it nationwide over the next three years”, spokesman Kevin Smith says.
In the past there has always been a choice between Actual cash Value policies and Replacement Cost policies. Will other companies follow and what will be the customer’s responsibility? Will it be wiser for the consumer to just replace their roof more often or deal with the additional cost when they incur?