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Let’s ASK Blake by Blake Day, Public Adjuster
President/Owner of
Day Adjusting & Consulting
blake@dayadjusting.com

About the RED FLAGS popping up in property insurance policies

What types of red flags should we look for in our policy as Coinsurance Penalty: This often comes into play more
they relate to our roof? commonly on commercial vs residential properties. A
Take a close look at the Roof Schedule Endorsement. coinsurance penalty means if the property is not insured to
This is a predetermined depreciation amount of how much the current market value and you have an insurance claim,
your insurance company will deduct from your insurance your insurance company can assess you for a large penalty.
settlement. If you have this endorsement, your policy will Oftentimes that penalty can be three or four times the
have a chart that shows the roof material, age of roof and amount of the policy deductible, leading to a significantly
percentage your insurance covers depending on those variables. smaller insurance payout.
This is detrimental for those with older roofs as they would Read your policy carefully. If you don’t understand the
have little to no value. coverage, ask for detailed explanations. With hurricane season
Also look to see if you have Cosmetic Exclusion. This around the corner, it’s better to ask now rather than later.
excludes coverage on damages incurred if they are not Not all insurance policies are created equally. During
considered functional. For example, if flying debris leaves large recent years, we have dealt with hundreds of client insurance
dents and scrapes to your metal roof that are clearly visible but claims. We have found that a common mistake property
did not cause a roof leak, fixing the cosmetic damage would owners make is in not reading and understanding their
not be covered by your policy. insurance policy completely and the ramifications that go
What does an ACV Endorsement mean in my property along with the policy jargon. I urge home and commercial
insurance policy? property owners to take the time to read their policy and be
An AVC endorsement in insurance refers to Actual Cash on the lookout for the RED FLAGS long before they need
Value, a method of settling claims that pays the depreciated to file an insurance claim.
value of damaged or lost property, rather than the full
replacement cost. In a typical homeowner’s policy, your About Day Adjusting and Consulting: As President of Day
depreciation is recoverable. With an ACV endorsement the Adjusting & Consulting, Blake’s passion is to help property owners
age of the item’s damaged in your home matters. For example, overcome the challenges associated with insurance claims. With
if your cabinets are damaged and are seven years old, your 15+ years of in-depth knowledge of the insurance industry, he and
insurance company will only pay you for seven-year-old his team are recognized as experts in first party property insurance
cabinets, this may be 50% or less of the actual replacement claims. His company is currently licensed in 15 states.
cost.
What are other red flags I should be aware of in my policy?
I would suggest looking at these two additional areas of
DayAdjusting.com
your policy.
Interior Water Endorsement: If a pipe breaks or water (855) 729-0838
overflows causing damage to your interior, this endorsement
determines the coverage. For example, your home is covered
for $400K but the endorsement states interior water damage
is capped at $10K. If water damages all of your entire flooring, FL P195287 | TN 2445048 | IN 3456048 | KY 8556898 | LA 936877 | CO
you will be capped at a much lower dollar amount than your 611420 | MS 10826917 | PA 1172703 | GA 3263703 | MN 40908893 | TX
3142662 | VA 1421790 | IA 13976549 | MO 3003031353 | OH 1577306
whole property is insured for.

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