Colorado had accumulated $1.5 billion in hail damage claims as of May 8, 2017.

Four years of large hail storms have prompted insurance companies to make changes to their policies. Starting this week, all new business wind/hail policies will require a $5,000 deductible. The good news is that rates are expected to decrease by approximately $350 annually on average.

Key Insurance Terms

• Depreciation – The reduction in value of property based on use, age, and product type.
• Replacement Cost Value (RCV) – The full value at 100% with no depreciation applied.
• Actual Cash Value (ACV) – The value of the property after depreciation is applied.

Depreciation Example

Consider a roof with a 30-year lifespan. After 15 years of use, it has depreciated by 50%. If the replacement cost is $20,000, the actual cash value would be $10,000 (50% depreciation applied).

Our Recommendations

• If your roof is less than 6 years old, select ACV (Actual Cash Value) coverage.
• If your roof is over 7 years old, choose the $5,000 deductible.
• Existing businesses do not need to change their current wind/hail deductibles.

Claim Filing Timelines by Insurer

• Progressive – Still allows two years to file wind/hail claims.
• Safeco and Travelers – Allow only one year to file wind/hail claims.
• MetLife – Allows only 6 months to turn in a wind/hail claim.

For more information, contact All Access Insurance at (303) 932-1700 or email rick@allaccessins.com.