An explanation of the American Modern “Cosmetic Roof Damage Exclusion” and “Roof Actual Cash Value” clauses

NOTE TO CLIENTS WITH AN AMERICAN MODERN PROPERTY INSURANCE POLICY:
-Your insurance agent at Ullrich Insurance wants you to know about the “Roof Actual Cash Value” and the “Cosmetic Roof Damage Exclusion” clauses on your American Modern property insurance policies. Read this article closely and let us know if you have any questions.

American Modern is an insurance company that insures many residential properties in Colorado including primary residences, occupied rental properties and vacant properties.

Roof Actual Cash Value Clause:
-For every property that American Modern insures, when a roof is 11 years or older, the roof is covered on an “Actual Cash Value” basis.
-“Actual Cash Value” (ACV) coverage for a roof reimburses the homeowner for the cost of replacing damaged property minus depreciation, reflecting its current market value rather than the cost to replace it new. This means that if the insurance company covers the roof as a part of an insurance claim, they pay the depreciated value of the roof.
-See the document below for full details.

Cosmetic Roof Damage Exclusion:
-For every property that American Modern insures, the roof has a “Cosmetic Rood Damage Exclusion.”
-Cosmetic damage which does not prevent the roof surfacing from continuing to function as a barrier to entrance of the elements will not be covered.
-Marring, pitting, denting and other superficial damage is not covered. Only damage that allows water or the elements to penetrate into the home will be covered.