Have (or Considering) Allstate Homeowners Insurance? Then this is a MUST READ!

Have (or Considering) Allstate Homeowners Insurance? Then this is a


As a General Contractor who also specializes in Insurance Restoration, we'd like to share our experiences with customers whose homes/properties are insured through Allstate. Being that our job requires we work with all insurance companies, we wanted to outline some of the differences which Allstate sets itself apart (and not in a good way). In this discussion, we will be talking about Hail claims.

Everybody’s Getting New Roofs, Do I Need One Too?

Well, “need” and “get” can be two very different things when it comes to Insurance Claims which could end up costing the insured thousands of dollars. If recent storms have affected your area, it’s always important to have a Pre-claim inspection conducted by a knowledgeable Contractor. What they find might suggest “need”, but not “get”. Let me explain, this comes down to meeting the criteria of your particular Insurance Company, not your neighbors. Using this criteria, an Insurance Adjuster will determine if storm damage, in this case “hail damage” warrants replacement of damaged items such as your roof. As an example, Allstate's criteria to establish this is based on the amount of damage found within 100sf of your roofing materials (not unlike every other insurer), however, Allstate may require 13-16 hail hits within this 100sf, whereas, State Farm may require 5-8 hits per 100sf. This means that Allstate must find Double the amount of damage to warrant replacement, so if your roof is damaged, by the standards of countless other companies, you are stuck with a damaged roof that you are now responsible for replacing. Meanwhile, your neighbors’ roofs are being replaced and YOUR premiums are still likely to Increase. Why? Simply put, your premiums do not increase for filing a claim or being paid for a claim due to a catastrophe, they increase due to other claims being filed in "your area". Wait! No new roof AND higher premiums? Guess who’s holding the short end of the stick here (or proverbial “bag”)?

Estimating the Cost of Damages

Either Allstate Adjusters, or the policies being outlined for their adjusters, can be extremely hard to deal with! While they may act kind in their dealings with you, this often changes once a contractor is involved. This reason is simple and unfortunate. When dealing with an insured, an insured is typically unfamiliar with how this process works, what they should be covering, why they should be covering it, and what it costs to repair. It's typically easy street for the adjuster at this point, however, when someone knowledgeable in these areas addresses concerns or differences with their findings or cost of repairs, whoa Nelly!!! Easy street just got difficult, and they sure rise to the occasion (being difficult, that is). The way we see it is basically; “let me help explain why a prescribed repair or repair price may be unreasonable so we can do right by the insured”. This is meant to be a team effort, and several other Insurance companies see it the same way. NOT Allstate! It has unfortunately been all too common for the tone of the conversation to become overbearing, argumentative, not open for discussion, and extremely "Matter of Fact" when defending their actions. These adjusters are not above being flat out rude, at times. They may even say, "if that's not enough, don't take the job" or “others may pay for it, we don’t!”, or even my personal favorite “if that’s not enough, use some of the profit from other parts of the job”! Our problem with this is, it ends up leaving the property owner to settle for someone willing to take the job, as opposed to selecting the company of their choosing. If we are asking for fair market value of repairs, it is so the property may be restored properly. This process is important, because not all projects are equal!  Each restoration will call for different variables and asking a computer software to properly process those considerations would be simply impossible. We use the same estimating software as most insurance companies and it is an excellent software. However, it still requires the help of human’s consideration and problem solving ability. That’s where we feel the discussion with the adjuster is an integral step in estimating construction costs.  

What is RPS coverage??

Have you ever heard of a Homeowners Policy with RPS coverage?? Neither have we, until recent. Google it, there is little to no information available! I just spent more than an hour being transferred from one Allstate department to the next, and not one person had even heard of it (not to mention, capable of explaining it). I've called local agents and left messages but have not yet received a response. It is alarming to me, how non transparent it is. An RCV policy is for Replacement Cost Value, and upon completion of the prescribed repairs you get paid in full (less your deductible). An ACV policy stands for Actual Cash Value, and upon completion of the prescribed repairs you will not receive depreciation. Therefore, you’re now responsible for your deductible and the depreciation amount. Think that last one was bad, in walks an RPS coverage. Now, I'm not saying other companies aren't trying to offer the same policy changes, what I'm saying is we've never heard of this or seen it with any other Insurance company apart from Allstate. I made it a mission to find clarity, and believe I may have found the answer. RPS basically means they can issue you, and charge you, for an RCV policy but pay you as an ACV policy!! How, you ask?? Well, if your roof becomes 10 years old, they only owe you the ACV portion. Again, the ACV portion would be the cost of the repairs, minus the depreciation, then subtract your deductible from that! To the best of my knowledge, this is how it would work out:

Assume you have a 30yr Architectural roof that is now 15yrs old (half way through its life), you would then depreciate it by 50%. Here’s an example;

Cost to replace roof   $20,000.00

(minus 50% depreciation)  $10,000.00

      (minus your deductible)   $2,500.00___

Allstate now only owes  $7,500.00

And You’ll Owe $12,500.00

Important Note: From the two articles I managed to find (and have attached), It is stated as though this type of coverage applies to All Allstate Customers. Again, these are examples, so be sure to check with your agent!

Don’t Let This Be You

Earlier this month, we were present at the time of one of our customer's adjustments. Allstate in fact, did determine the roof met the criteria for replacement. When the customer received the estimate of repairs in the mail, he came to find, of the $20,000.00 in prescribed repairs, he'd be responsible for more than $10,000.00 of it!!!! Mind you, he has been with Allstate for 20+ years, and doesn’t believe he’s ever filed a claim. Shouldn’t 20 years of premiums be enough to cover the full cost of repairs? You’re right, it should.

Lastly, a scary afterthought: If this gentleman cannot afford the repairs, can his insurance company now say they can no longer insure the property and drop him from coverage??? Roof and Siding replacements happen to be two of the most expensive repairs a property owner may require, make sure your insurance is written with the proper coverage for these type of repairs.

The Bottom Line

 "You get what you pay for", or in this case, “what THEY pay for”. Therefore, it's important you ask yourself; Are the premiums I pay, truly protecting me? In the end, you'll have to decide which Insurance is best for you. Here's our advice: Review your policy (and it's exclusions), form some questions, maybe some hypothetical situations, and do a little homework. Once you've done this, call your Agent, they should be there to help you. Remember, there is NO stupid question or limited number of questions you are allowed to ask. You are making a financial decision/investment, do it wisely. You pay for those preiums in the event you need it, you want to be sure they got you covered!

For more informtaion or to find out how Ridgid Construction can help you, call 1-405-778-8877 today or fill out a contact form HERE!


(Look for my upcoming article; “How to choose a Good Insurance Company, Before You Really Need Them!”)

This article was written to share  views, opinions, and concerns of author, as well as, to raise awareness for those that require Homeowners Insurance.

Sources of information included in the following article’s: titled “Allstate looks to make homeowners pay more for roof repairs”. titled “Consumer advocates raise the roof over Allstate’s new home insurance rule”


Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any agency. Sources provided are only examples. We recommend checking directly with your Insurance Agent. Assumptions or Opinions within this article should be taken as such. 

our service area

We serve the following areas

Our Locations:

Ridgid Construction
2632 W I 44 Service Rd
Oklahoma City, OK 73112