Advisory Opinion: Replacement and matching of damaged property items (806 KAR 12:095 Section 9(1)(b))
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Advisory opinion clarifying the Kentucky Department of Insurance interpretation of 806 KAR 12:095 §9(1)(b) governing when insurers must replace all items in an area to achieve reasonable uniform appearance after covered loss; applies to all admitted insurers and licensed adjusters handling property claims in Kentucky.
No material clinical or coverage changes in this revision.
When Replacement Is Required
Replacement requirement
When a covered loss requires replacement and replacements do not reasonably match the remainder of the area:
Matching available
- If identical materials (e.g., existing roof shingles) remain in production and are available, their use satisfies the regulation even if age-related discoloration exists.
- If identical items are not available, the Department will review the proposed replacements for reasonable match based on quality, color, and size; if they do not reasonably match, the insurer must replace all items in the area.
Example — roof slant replacement
Illustrative application for roofing:
When matching satisfies rule
- Use of the same shingles satisfies the regulation even if discoloration from aging or wear exists, provided the same shingles remain in production and are available.
- If the same shingles are not available, the Department will evaluate the quality, color, and and size of proposed replacements to determine whether a reasonable match has been met; if not, replacement of the entire area is required.
Insurer Obligations and Enforcement
Filing amendments required; deadline and enforcement
Any insurer using policy forms or endorsements that conflict with the Department's interpretation of 806 KAR 12:095 §9(1)(b) must amend those filings. The Department specifically requires amendment of filings (including endorsements that impose sublimits on matching undamaged areas) by September 1, 2024, and warns that failure to comply may result in administrative action.
- Amend any forms or endorsements that violate 806 KAR 12:095 §9(1)(b).
- Include correction of endorsements that place sublimits on matching undamaged areas of a home.
- Compliance deadline: September 1, 2024.
- Noncompliance may result in administrative action.
Key Terms
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