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An insurance ‘process’ on roof replacements

December 4, 2018

It has come to my attention through a friend of mine, that insurance companies are not the most congenial organizations. They make pretensions of friendliness, but believe me, they are all hard-nose businesses.

My friend had to have her roof replaced because of hail damage, but her insurance company would only allow her $2,000 to pay for the damage and repairs. The reason for this is a process or company rule that recduces the settlement they must make, even though the need for replacement was no fault of hers. This process, called a cash-value process (I call it a scheme), begins the day your roof is put in place, and continues until it is replaced for whatever reason.

By this process, the value of your roof is diminished by a certain percent each year so that by the twelfth to fifteenth year of that roof’s existence, its so called value will have been reduced to a minimum figure approaching your deductible. This way, the insurance company only has to pay a minimum on the policy, not the full coverage. The deductible should never be applied to a homeowners insurance.

If the owner wants to replace the roof for any reason other than a catastrophic event, he/she will be paying the full price for that replacement. On the other hand, a catastrophic event is not in any way the responsibility of the owner.

So when the spokesperson for an insurance company tells someone that they have “covered” the cost of any event in their commercial, they are not in reality paying the whole cost, but only the devalued cost.

I am almost positive that my friend’s insurance company is not the only one that does this, but rather they are all guilty of this shameful practice. What is even worse, many, if not all, politicians swear up and down that they are going to do something about it every election year for at least the last 20 years, but to the best of my knowledge, nothing has ever been done. And the cost of our insurance keeps on going up.

Could it be that our politicians are in the pockets of the insurance companies?

Ian Sterling lives in Universal City.

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