Effective October 1, 2012, Tennessee Famers Mutual Insurance Company (Farm Bureau) will settle all roof claims for actual cash value rather than full replacement value for all new and renewal business. In addition, Farm Bureau will now require that all hail losses be reported within one year from the date the hail damage occurred for all property policies.
Farm Bureau will add the new endorsement to all policies regardless of the age or condition of the roof. Previously, Farm Bureau had only been adding AC V endorsements to policies on an individual basis where it was determined that the roof's condition was such that the policy would be cancelled or not renewed without the AC V endorsement.
This change has been a topic of interest for several years in the General Assembly as a result of roofing companies offering consumers a "free roof" in aggressive marketing campaigns. However, the change likely resulted from hail and wind losses Farm Bureau has suffered in recent years.
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