What it does
CP 10 36 was introduced in the 10 12 multistate revision. It has two options, and the Schedule shows which applies to each building:
- Paragraph A – Actual cash value for roof surfacing: even if the policy has replacement cost, roof surfacing damaged by any Covered Cause of Loss (including wind and hail) is valued at actual cash value at the time of loss.
- Paragraph B – Cosmetic damage exclusion: no coverage for cosmetic damage to roof surfacing caused by wind and/or hail. Cosmetic damage is marring, pitting or other superficial damage that changes appearance but does not stop the roof from keeping out the elements as well as it did before.
"Roof surfacing" includes shingles, tiles, cladding, metal or synthetic sheeting, the materials used to secure the surface, materials under it for moisture protection, and roof flashing.
Who sees it
It is common on renewals in hail-prone states and on buildings with older roofs. Metal roofs are a frequent target of Paragraph B because hail dents them without causing leaks.
Quoting and selling notes
- Explain the dollar effect. A 20-year-old roof at ACV may pay only a small part of replacement cost.
- Get roof age, material and last replacement date. A newer roof may avoid the endorsement or allow Paragraph B only.
- It often appears together with a windstorm or hail percentage deductible (CP 03 21).
