What is recoverable depreciation on a roof claim

After you make a roof claim the insurance company claim rep will provide you an estimate to replace your roof and the company will issue a claims check

But the claims check will not be for the full amount to replace your roof

It will have an amount that is deducted from the estimate

This is depreciation based on the age of your roof

Your first check will include a deduction for depreciation


It is ok to deposit your first claim check


This does not close your claim or prevent you from recovering the full amount to replace your roof

The second check you receive is called recoverable depreciation


In order to get the second check you must show the insurance company you replaced your roof

You can send photos and an invoice to your insurance company claim rep and they will issue the remaining amount needed to get your roof replaced


You must have Replacement Cost on your policy to receive the second claim check


Some insurance companies do write new homeowners insurance policies and place an ACV (actual cash value) endorsement on the policy

So check with your agent to determine if your have a replacement cost policy


If you have an ACV endorsement your roof claim check will be based on depreciation calculated on the age of your roof

The older your roof the more the insurance company will deduct from your claim check and you will not be eligible for the second check which is recoverable depreciation


What is your Hurricane or Wind Deductible?

The homeowners insurance deductible is not the amount you pay but the amount the insurance company deducts from the claim check.



If you have a % deductible such as 2% hurricane deductible the insurance company will deduct 2% of the insured dwelling amount from the claim check

Example you have a 250,000 home with a 2% Hurricane Deductible

250,000 x 2% = $5,000

Your insurance company would deduct $5,000 for any hurricane related damage claim check

You would be responsible for the first $5,000 of damage to your home

If your hurricane damage estimate is below $5,000 you would not receive a claim check for damages from your insurance company until your damages exceed $5,000

The Hurricane deductible only applies to a Hurricane damage related claim

Tropical storms would not apply



Would apply only if the wind damage is from a storm with a name including Tropical storms and Hurricanes 



Your wind or hail deductible would apply the same way as above but it would apply to any and all wind claims including Tropical storms and Hurricanes

Any wind damage regardless if the damage is from a Named Storm your wind deductible would apply

The claims process

The Claims Process after a Hurricane

Here is a claims process after a hurricane and I will post each day walking you through the steps including understanding deductibles and recoverable depreciation


1. File a claim

2. Speak with your claim rep

3. Claim rep inspects your property

4. Claim rep writes the estimate

5. Claim check is sent

6. Hire a contractor

7. Contractor may have more damage than initial estimate

8. Send Claim rep supplemental estimates


Just remember your first claim check does not indicate it is your last claim check

just because you cash the first check does NOT conclude your claim unless you sign a property damage release form…

but no claim check from your own insurance company would include a release form




I was an auto claim rep for years before I opened FM Agency Group

When your car is damaged the body shop writes the initial estimate but often there would be supplemental estimates (more damage discovered)

I will explain more in detail about supplemental estimates and recoverable depreciation but for now get your claim filed



click on the link below

file a claim

Am I covered if my tenant has a dog?

Most Landlord Rental Dwelling policies do not offer any liability to a landlord if your tenant’s dog causes a claim

But…there is one insurance company that can but you need to qualify

Best Practices with Tenants is not to allow pets not only for liability reasons but for damage concerns

Have them purchase an HO-4 policy to protect their personal property and provide them a layer of liability starting at 100,000 of lawsuit protection and also if they accidentally burn your property down

Intentional damage is not covered but accidental damage would be covered under their HO-4

Does your tenant have a car insurance policy?  

If you so they can purchase the HO-4 policy from their car insurance company for as low as $10 a month and get a car insurance discount

Everyone wins

If your tenant does not want to purchase an HO-4 policy and has a dog we understand you may need a tenant in your rental property and you need to make an exception

Does the Rental Property policy have any breed restrictions?

First you need to understand no liability will ever extend to a prohibited breed of dog

Prohibited breeds of dogs include:

  • Akitas Inu
  • Alaskan Malamute
  • American Bull Dog
  • American Staffordshire Terrier
  • American Pit Bull Terrier
  • Beauceron, Boerboel, Bull Mastiff American Bandogge
  • Bully Kutta (any other Mastiff breed)
  • Cane Corso Caucasian Ovcharka (Mountain Dogs)
  • Chow Chow
  • Doberman Pinscher (miniature Dobermans acceptable)
  • Dogo Argentino
  • English Bull Terrier
  • Fila Brasileiro (aka Brazilian Mastiff)
  • German Shepherds
  • Giant Schnauzer
  • Great Dane
  • Gull Dong (aka Pakistani Bull Dog)
  • Gull Terrier
  • Husky or Siberian Husky
  • Japanese Tosa / Tosa Inu / Tosa Ken
  • Korean Jindo
  • Perro de Presa Canario
  • “Pit Bull”
  • Rhodesian Ridgeback
  • Rottweiler
  • Staffordshire Bull Terrier
  • Thai Ridgeback Wolf or Wolf hybrid

and any mixed breed dog containing any of the aforementioned breeds

Here is a sample of the policy form you need on your rental property policy

You can purchase up to 500,000 of liability on rental property to protect you as a landlord

We can write animal liability on rental properties in Louisiana

If you would like us to quote 1 to 100 properties for your rental property just click here or send us an email or give us a call 504.348.3131

tenant damage not covered by insurance

When is damage from your tenant covered under your landlord policy is a common question we get…

A rental dwelling landlord insurance policy on a dwelling three (DWG-3) does provide coverage for theft and vandalism but the policy includes two types of tenant damage that is excluded



Any intentional damage by your tenant should be covered in your lease and protected against with the collection of a security deposit

You should provide your tenant with a list of items that can reduce the security deposit if you have to repair or replace

Here is a sample list you could provide to your tenant(s) 

You can use this sample list Security deposit deductions

Any intentional damage caused by your tenant such as spray painting the walls or punching holes in the drywall would not be covered by your insurance policy



Any maintenance issue is not a covered claim by an insurance policy

Damaged blinds, stained carpet, nail holes in drywall, scratched hardwood flooring

They are wear and tear issues caused by daily use of your property

These two types of damage would be covered by your security deposit not your landlord rental dwelling insurance policy


What is covered under my insurance policy due to tenant damage?

Recently there was a tenant evicted from an apartment complex in New Orleans

Upset about being evicted she burned down the apartment complex

Fire is a covered claim loss under a policy but arson committed by the named insured (owner of the property) or by the direction of the property owner is not

Accidental fire damage caused by your tenant is covered

Leaving a candle burning and the unit goes up in smoke or running a bath and falling asleep were two actual claims filed recently 

This is considered accidental damage and fire and water damage are covered under a dwelling 3 (dwg-3) policy form


Not all Landlord policies cover water damage so it is best to understand your policy

We have a new Rental Advantage Protection program that covers water damage

Some of the most important coverage options that are available on our new Rental Advantage program include

  • Lawsuit Protection
  • Theft 
  • Vandalism
  • Water Backup
  • Loss of Rental Income
  • Sewer Line replacement
  • Air Conditioning Heating System Mechanical Breakdown

If you would like to discuss protecting on location or a your entire rental property portfolio just give us a call or text at 504.348.3131 or send us an email at contact@fmagencygroup.com

Hurricane Laura relief help

Living in New Orleans no one understands more about what it is like after a hurricane

Loss of power for days or weeks

Stores closed and the streets are quiet at night

I still remember the smell after Hurricane Katrina

The mold and trash piled up for weeks in the street as most homeowners were pulling up carpet and sending their duct taped refrigerator to the curb

When a hurricane hits another community like Hurricane Laura did to Lake Charles my heart sinks

The damage looks horrible and some residents are going home to nothing



I ask myself this every time after a disaster

I’m like most I want to help but I don’t want the money wasted

I don’t want 1% of my contribution going to the people in need and the other 99% to pay the charities operating costs

You can research a charity using Charity Navigator or Guidestar

and if you detect fraud you can report it to the National Center for Disaster Fraud


I was doing some research over the weekend…checking social media posts and reading up on websites



There are many to choose from and in no way are these the only three

Like me we can give to all of them but pick one and send what you can is my thinking


SBP is an organization that provides the assistance to disaster-impacted families in need and was founded after Hurricane Katrina in March 2006

Read more in the about us section

Where does your money go?

Your donation provides

$100 – provides protective gear to 10 volunteers

$250 – funds 3 kits to muck/gut flooded homes

$500 – helps SBP reach 1,000 homeowners with disaster preparedness education

$1,000 – deploys a team of AmeriCorps members to support disaster recovery



In direct response to Hurricane Laura this is an organization that will distribute funds to non profits that have proven to help when disaster strikes

Where does the money go?

Disaster grants pay for food, shelter, medicine and all other necessities that help stabilize those in most immediate need




This is a local favorite that helps provide food for the hungry. 

They provide 34 million meals annually to people in need

They have boots on the ground in the Lake Charles area 

Every $1 donated provides 4 meals to someone in need

Donate now to Second Harvest Food Bank



If you prefer to contribute to national charities 

Salvation Army 

Red Cross


United Way of Southwest Louisiana

Transfer of risk on homeowners insurance

A homeowners insurance strategy you can use is Transfer of Risk

You can transfer more of the risk to you when you take a higher deductible

The insurance company does not want you to make small claims

I see it every day….claims payouts as low as $500


Consider moving the risk from the insurance company to you

When you do this the insurance companies offers you a lower rate on insurance

The deductible is the amount the insurance company deducts from the claim check

The higher the deduction on the claim check, the lower rate you pay for home insurance



If you are someone that doesn’t make claims,

you need to consider a higher all other perils deductible.

All other perils deductible is any claim that is not a hurricane or named storm.


Here are some common home insurance claims where  the all other perils deductible would apply

-Water claims (not flood which is rising water from outside)

-Busted pipes

-Busted water heater




-Smoke damage



Over the past few years this deductible which was once as high as 5% of your insured replacement cost value

Due to many homeowners insurance companies entering the Louisiana homeowners insurance market 

the named storm and hurricane deductibles can be as low as 1,000

Consider the rate difference on a 1000 deductible and a 1% hurricane or named storm deductible

If there is a savings you may consider the higher deductible

I’m sure another Hurricane Katrina and this low deductible option will go away

If the insurance companies are offering a low hurricane deductible you may want to get it while it is still being offered


UPC insurance company can now offer a wind deductible as low as $1,000

If you are looking for a large financially stable insurance company that writes in over 12 states and has the ability to pay claims 

UPC might be the answer for your homeowners insurance protection



What’s this all about?

Transfer of risk is not just a homeowners insurance strategy for wealthy individuals.

This is something you can do as well.

You can save a considerable amount of money over time by taking on a higher deductible and moving some of those savings to increase your car insurance liability and make sure you have the insurance protection in place to protect you, your family, your investments, your assets and most importantly your future earnings.

And remember only take on the amount of risk you can handle.

Insurance is used to protect you from a financially devastating event.

Raise your deductible to a level that would not hurt you financially.

If a $1000 loss is a financially devastating event,

don’t raise your deductible higher to save money on your home insurance rate

Insurance is to help you sleep at night knowing you are protected,

not to keep you up at night wondering if a claim is covered


My name is Tim D’Angelo and I can review your deductible savings strategy on home insurance

You can contact me at 504.348.3131 or complete the quick form

UPC insurance company earnings report

United Insurance Holdings (UIHC) reporting quarterly earnings of  $0.20 per share beating the estimate of a loss of $0.05 per share per the yahoo finance report

UPC United Property and Casaulty Insurance Company is a Florida domiciled insurance company operating out of St. Petersburg and writes in 12 States

At the end of 2019 net admitted assets surpassed 1 billion ($1,036,045,180) according to Demotech, a financial rating agency

UPC is one of the largest insurance companies writing homeowners insurance in Louisiana

you can learn more about UPC homeowners insurance and their rankings in the United States here


No.  They write Landlord Rental Dwellings

Flood Insurance

Tenant Renters Insurance HO-4

Condominium policies HO-6


If you own a home in an area that is susceptible to hurricanes like South Louisiana you need to know how strong is your insurance company.

Some questions to ask

Do they have the ability to pay claims after a hurricane?

Are they protected by the Louisiana Insurance Guaranty Association up to 500,000 per house?

UPC with net admitted assets over 1 billion to appear to have the financial stability needed in a coastal insurance market



No insurance company is the cheapest on every home 

If they were they would be out of business the next time the wind blows

New companies do enter markets with cheap low rates but once the wind and claims come rolling in their rates either go up or they exit the market

We recently helped a client with their new home purchase and discovered his real estate agent had recommended their friend for insurance

The other insurance agent removed Replacement Cost on the roof and our client would have received pennies on the dollar on his next roof claim leaving him with not enough money to get a new roof

5 coverage options you need when buying a new home


Here is an example of a friend of mine living in Lakeview New Orleans Louisiana

He built a home after Hurricane Katrina like most in the neighborhood

He had been with a company for more than a few years but each year rates kept going up

He emailed me over this homeowners insurance declaration page and I told him we could save him $750 a year and get him much lower deductibles

He had a 2% hurricane deductible on a 300,000 home so the deduction off of his next hurricane claim check would have been (6,000)

We were able to get him a 2500 hurricane deductible

If you are looking for financial stability and claim paying ability after a hurricane United Property and Casualty Insurance company (UPC) might be the option you need

If you want a quote just click here to begin

5 coverage options you need when buying a new home

Here are the most common homeowners insurance coverages removed by insurance agents and mortgage brokers so you can get the cheapest quote

In this article are explained coverage add on endorsements you need because after you buy a house you don’t want to pay out of your pocket on your next claim

  • Replacement cost on contents
  • Roof replacement coverage
  • Water Back up
  • Service Line protection
  • Home Systems



When this coverage is removed it allows the insurance claim rep to pay you for your damaged property at a deep discount that saves the insurance company money and you’re left with not much to go out and replace your things

Actual cash value is when the claim check has a deduction for depreciation

ex) If you have a 5 year old sofa and it is damaged instead of getting the money to go out and buy a new one you would get 5 years of depreciation deducted from the claim check

The older your personal property the more the insurance company deducts from the claim check

You want Replacement Cost on Contents or personal property



I didn’t even know you could remove this coverage but one of our customers was buying a home and his real estate agent recommended her insurance agent to give him a quote and they removed replacement cost on the roof and added actual cash value to make their quote cheaper than ours

Without replacement cost the claim rep will deduct for depreciation on your next roof claim check and the older the roof the less money you get to replace your roof

This one mistake could cost you thousands off the next claim check



An inexpensive coverage add on to give you the coverage needed for damage when the water backs up into your home

This is something most home buyers believe is automatically covered but without the endorsement to the policy you would be paying this damage out of your pocket

This add on can be as low as $25 a year



When the sewer or service line under the slab collapses this coverage allows the insurance company to pay for the pipe replacement

Damage estimate starts around $5,000 so your policy needs to include this coverage



This is a complete breakdown of your a/c unit, washer and dryer, dishwasher, refrigerator, tv or computers

If you are buying a new home you may want to consider a home warranty for the first year and this add on to the homeowners insurance policy to give you complete protection of your property

If you are buying a new home in Louisiana and want to get a home insurance protection proposal from the top three companies in the zip code just click here to get started

Don’t assume your builder has you covered


If the Residential home builder told you their policy will protect you when building a new home you may want to ask a few questions

If you don’t own the land or the home until the project is complete you are ok

The residential home builder is responsible for the home until they hand you the keys at closing

But if you own the land and want to build a new home and searching for a custom home builder

You are going to need a special home insurance policy not a builders risk policy to get the protection you need



A standard home insurance policy will not cover any claims when a home is vacant and under construction

Only a few home insurance companies in Louisiana will offer a special endorsement or add on that will give you the coverage you need from start to finish

One policy is all you need but you need to make sure you have the right policy


Learn more about Home Insurance for New Construction click here


What is the difference between a home insurance policy and a new construction home insurance policy?


The New Construction home insurance policy has special endorsements that protect you and the home

Theft of Building Materials is not a normal coverage on a standard home insurance policy but when your home is under construction the policy includes this important coverage option


If a home is vacant over 60 days with no electricity a regular home insurance policy could exclude all coverage but with the under construction policy this risk is acceptable


You may qualify for our new Home Under Construction Insurance program

You may qualify if 

  • You intend to hire a licensed and insured contractor to build or renovate your home
  • You complete the project in 12 months
  • You intend to occupy the home once the project is complete
  • The insurance policy is for you not the contractor

If you would like to learn more about the NHCP for new home construction projects

click here