Reddit Adjusters Discuss Declining Storm Coverage Trends

This Reddit thread on r/adjusters highlights a growing trend among insurance companies to reduce storm damage coverage. Adjusters report seeing an increase in high wind and hail deductibles, cosmetic exclusions, and the adoption of ACV policies. These changes suggest a shift away from providing extensive coverage for storm damage, primarily due to increasing claim volumes and the prevalence of fraudulent claims, especially in the roofing sector.

One commenter noted that the profitability of roofing businesses might decline due to these changes, predicting a shift towards more repairs instead of replacements and the introduction of restrictive endorsements. Another adjuster pointed out that companies like Allstate are becoming stricter in their assessments of hail damage, leading to fewer roof replacements. This reflects a broader trend towards limiting insurance coverage for roofs, especially older ones.

Moreover, some adjusters draw parallels to the past, comparing the current situation to the early 2000s mold crisis. Back then, limits on mold remediation coverage led to a drop in exorbitant remediation costs. Similarly, stricter roof coverage may lead to fewer "free" roofs being replaced under insurance policies. This shift could incentivize homeowners to take more responsibility for maintaining their roofs, potentially impacting the market for roofers and adjusters alike.

Additionally, comments from industry professionals indicate that insurance companies are adjusting their policies in response to increased natural catastrophes and predatory contractor practices. This includes raising deductibles and implementing stricter underwriting guidelines to ensure the condition of the insured property. These measures, while aimed at reducing fraudulent claims and managing risks, may also lead to an increased workload for adjusters tasked with denying claims and dealing with dissatisfied policyholders.