The notice also advises insureds that if the roof has been replaced at any time in the past 15 years, to contact the agent. The insured may be eligible for a premium reduction or for the roof replacement cost option. The options may also be available if the roof is replaced in the future — and insureds are advised to contact their agent then and to retain documentation of any roof updates, such as receipts or contractor invoices, for verification purposes.
As noted in the accompanying article, adjusting roof damage on an actual cash value basis in a loss involving a homeowners policy is quite a departure from current claim handling practices. In the absence of this endorsement, damage to the roof would be adjusted on a replacement cost basis, new for old, provided the homeowner insured met the 80 percent insurance to value requirement. This is so despite the fact that the roof is more than 15 years old.