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The American Contractor Show

What Insurance Companies Don’t Want You to Know When Repairing Homes

πŸ“… September 1, 2020 ⏱️ 43:38 🎀 John Dye, Mike Lindhurst, Anthony Rolfes

Chapters

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  • 0:00
    Intro: September 1st and the Q4 push
  • 2:14
    Upcoming Cedar Rapids and Louisiana storm workshops
  • 5:25
    Meet Mike Lindhurst and Anthony Rolfes; the matching issue
  • 6:29
    What 'matching state' really means
  • 8:09
    Core matching concepts: like kind and quality
  • 9:14
    Iowa's statute and 'reasonably uniform appearance'
  • 11:24
    Line of sight: one wall gets three, two gets four
  • 14:34
    Color is the trigger, even for faded shingles
  • 16:11
    Titanium oxide: pre-2004 siding won't fade to match
  • 17:17
    ITEL: useful for ID, biased on causation
  • 21:06
    Put the policyholder first
  • 22:43
    Cedar Bluffs and the exclusion end-around
  • 28:00
    The moving target: shifting carrier guidelines
  • 30:43
    The MWL 50-state matching primer
  • 35:10
    'Or damage' means loss of value is damage
  • 36:46
    The principle of indemnity: no reminder of the loss

Speakers

J
John Dye
Host, The American Contractor Show
M
Mike Lindhurst
C3 Group
A
Anthony Rolfes
C3 Group

Key Takeaways

✦

'Exact match' appears nowhere - policies say 'like kind and quality,' and statutes/case law use words like 'reasonably uniform appearance,' considering color, size, texture, and shape.

✦

'Is this a matching state?' is the wrong question - what matters is three layers: the state statute, the NAIC model act, and the outcomes of lawsuits (Iowa has all three).

✦

Color is the strongest trigger - materials fade over time, so even the same shingle or siding won't match a faded original; a side-by-side swatch photo is a contractor's best evidence.

✦

Line-of-sight rule of thumb: one wall of damage gets you three, two walls of damage gets you four - because corner post to corner post, replacements naturally wrap the structure.

✦

Siding installed before ~2004 will never 'fade to match' - manufacturers added titanium oxide (the UV blocker in sunscreen) to the color mix, so pull the install date and batch to prove it.

✦

ITEL is a hammer, not a house - useful for identifying whether a material is still made, but it slants toward carriers on causation ('close enough' matches), so don't rely on it for that.

✦

Always start with the policy - carriers rewrite it when they lose; after Minnesota's Cedar Bluffs case, American Family added an 'unmatched property damage exclusion' and stripped appraisers' authority to decide coverage.

✦

Understand indemnity and betterment - replacement-cost, ordinance/law, and matching coverage all put a homeowner back better than before; that's the bargain the policyholder paid for.

✦

'Or damage' is your policy argument - a standard ISO policy covers loss OR damage, and a mismatch that lowers property value is a pecuniary damage even without direct physical damage.

✦

Put the policyholder first - the principle of indemnity means an insured should have no physical OR economic reminder of a covered loss; aligning with the homeowner (not just maximizing your invoice) is what earns trust and the right outcome.

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