If You’re a Low-Risk Driver, ‘AI’ Will Be a Game Changer!

     Which is why homeowners will ride out an old roof until they have no choice.

     Unfortunately, that strategy has become increasingly riskier and you may notice some changes to your next policy.

     Carriers are beginning to refuse coverage for aging shingles, in many cases when they have hit the 15-year mark. Consequently, if your roof was installed in 2010 or earlier and sustains certain types of damage, you may be facing the possibility of a dramatically reduced claim. 

In some cases, you may be ineligible for coverage altogether.

     Carriers are getting fussy about roofing materials, too. If you are planning to install a new roof, be aware that you are likely to be rewarded with lower premiums by opting for metal or other durable materials, as opposed to standard-issue asphalt.

     Many existing policies already address the issue of an aging roof in the form of a depreciation

schedule. Again, once a roof hits the 15-year mark, repair or replacement payouts can shrink dramatically. And in truth, that depreciation beings at five years in many policies.

     So what has changed?

Needless to say, labor and material costs for repairing or replacing a roof have gone up with all costs over the past half-decade or so. And you might lay some blame on the pandemic. Actually, that’s not accurate. 

     The two major reasons for these increases are 1) the greater frequency of severe weather events, and 2) roofing companies that report damage related to long-term wear and tear as “storm damage” in order to improve an insurance payout.

     Clients rarely read their policies closely enough to be aware of this looming cost. And they probably eschew routine inspections and maintenance, believing that “If a roof ain’t leaking, it’s fine.” 

     Does this sound like you?

If so, know that we’ve got your back. If a carrier has increased its requirement for frequent, detailed inspection, we will make you aware of what you can do to avoid roof-related sticker shock when your policy is renewed.

     Fortunately, some homeowners are diligent about inspections, and vigilant after big storms. 

Does that sound like you? Great! We’ve got your back, too! 

     Let us know if you have paid for basic maintenance before your policy is renewed. We will help you submit receipts and paperwork related to roof repairs and then go to bat for you with your carrier.

     All may be fair in love and war, but not in business. 

     In March 2024, the Illinois Supreme Court weighed in on a defamation suit involving Chicago-based shipping logistics competitors Project44 and FourKites. 

     The case revolved around a pair of emails sent to Project44’s Chief Revenue Officer and two non-employee board members. The emails claimed the company was guilty of accounting improprieties and accused another executive of having possible mob ties. It also suggested that there was evidence of a Ponzi scheme.

     The senders of the email posed as a former Project44 employees with inside knowledge, but Project44 successfully petitioned the courts to make Google reveal the sender’s IP address. 

The real senders turned out to be associated with Four Kites. 

     After the case worked its way through the circuit and appellate courts, the state Supreme

Court determined that Project44 could proceed with its defamation suit against Four Kites.

     So what does this have to do with insurance? 

Dukane Financial writes a lot of business policies and we know that, in a highly competitive business environment, there is a natural temptation to sow the seeds of discord in a rival company. 

     We also know that underwriters often issue business insurance policies that exclude coverage in cases like this one—or send premiums soaring in the future. 

     If you own or operate a business, this case illustrates how a practical joke, crank email, or something more malicious, can go sideways. More and more companies are adding language to employee policies that ensures friendly competition stays friendly.

     There is a fine line between pestering and protecting an insurance customer. 

     Believe me, we know. And we also realize that this fine line is a little different for everyone.

That being said, the four words no homeowner wants to hear from an insurance agent are: “Sorry, that wasn’t covered.” 

     Which brings us to the California wildfires.

The massive destruction of this natural disaster exposed some soft spots in policies—in many cases because customers were too busy, too disorganized, or too frugal to take the time and make the effort to properly document high-value items. 

     This included jewelry, artwork, antiques, classic cars and collectibles. While the loss of jewelry and other expensive items is limited for theft, in most policies, it is fully covered for fire. For example, a lot of six-figure paintings and five-figure baseball cards went up in smoke during the wildfires, literally and figuratively. 

In the days before everyone had smartphones in their pockets, documenting valuable was annoying and time-consuming. Now, no one has an excuse. 

     Everything you want covered must be properly photographed and uploaded to a file or folder dedicated to insurance. A good agent can show you how to do this. We do it all the time.

Part of this process involves photographing receipts for these items. If a receipt is lost or unavailable—or if the item has increased dramatically in value since it was purchased—find a trusted appraiser with whom the carrier (or your agency) has worked before. 

     If your insurer insists that documentation of specific items must take place at regular intervals, or that proof of ownership is confirmed in some other way, we will help you stay on top of the process and remind you of your responsibility.

     That’s not pestering. That’s protecting.

     And it’s why our four favorite words, even in a worst-case scenario, are…

“Good news, that’s covered.”