Auto Insurance Considerations
Roof Warranty Considerations
1.Named insured: Auto insurance companies
have a named insured on the policy
1.Name of original or current building
owner: In many cases, the warranty is transferable to a new owner.
2.List of drivers: Auto insurance companies
require a list of drivers on the policy. They will do a police report on every named
driver to assess the risk of each driver, including speeding violations, driver’s age,
etc.
2.Roof access: There is no control on who
has access to the roof. All vendors that have equipment on the roof have free rein to
access the roof to service the equipment.
3.Type of use: If the vehicle is used for
business, they want to know the type of business, types of use, distance traveled, etc.
It’s all about risk assessment.
3.Type of use: The cost of the warranty is
set by a per-square-foot price and does not take into consideration the risk of the type
of roof. For instance, a restaurant roof that has a lot of equipment on it that needs
regular maintenance is underwritten at the same risk rating as a warehouse roof. Also,
changes in building usage over time is not factored in.
4.Age of the vehicle: How old is the
vehicle? Is collision insurance needed?
4.Age of roof: The cost of the warranty is
decided up front and cannot be adjusted for inflation over the life of the roof.
5.Legal system consideration: What are the
courts like in the insured’s state? Do they defend stated insurance limits or do they
tend to rule in favor of the driver?
5.Legal system shortcomings: Regardless of
whether your warranty excludes coverage for the issue that caused roof failure, the court
system is made up of attorneys and judges that look out for each other. Once a roof issue
ends up in court, nobody wins except the attorneys. Rarely is a case won outright.
6.Replacement cost control: Insurance
payment is made based on the agreed replacement cost of the insured vehicle, usually
based on an average of multiple rating services.
6.Replacement cost liability: Since the
cost of the warranty is determined upfront and there is no way to factor in regional cost
differences or usage differences for a roof replacement (NYC vs Lancaster County PA).
Also, replacement costs are going to vary depending on the makeup of the roof and the
equipment on the roof, etc.