Two Identical Roofs, Two Very Different Checks
After a hailstorm, one neighbor receives $22,000 for a roof replacement and another receives $8,400 for the same damage on the same street. The difference is almost never the adjuster. It is one line in the declarations page: replacement cost value (RCV) or actual cash value (ACV).
Storm damage on your roof? Independent Restoration Services inspects and documents at no cost. Call (615) 205-5523.
RCV: What It Costs to Replace Today
An RCV policy pays what it costs to install a comparable new roof, minus your deductible. Carriers pay it in two stages:
- First check (ACV portion): replacement cost minus depreciation minus deductible, issued after the adjuster inspects.
- Second check (recoverable depreciation): released after the work is completed and you submit the final invoice.
Homeowners who do not know about the second check leave real money unclaimed every year. If your roof replacement costs $24,000, depreciation is $9,000, and your deductible is $2,000, the first check is $13,000 and the recoverable depreciation check is $9,000.
ACV: Replacement Cost Minus Age
An ACV policy pays only the depreciated value. Nothing is recoverable later. On a 20-year asphalt roof with a 25-year expected life, depreciation can exceed 70 percent, leaving you responsible for most of the replacement.
Many carriers moved older roofs onto ACV or a roof surfaces payment schedule automatically once the roof passes 10 or 15 years. The National Association of Insurance Commissioners and your state insurance department both publish consumer guidance on these endorsements. Pull your declarations page and look for the words roof surfaces, windstorm or hail loss to roof surfaces, or cosmetic damage exclusion.
How Depreciation Is Actually Calculated
Most estimating software applies straight-line depreciation:
Depreciation = replacement cost x (roof age / expected life)
An architectural shingle roof is usually assigned a 25 to 30 year life, three-tab 20 years, metal 40 years, and tile 50 years. Two arguments frequently win adjustments:
- Labor should often not be depreciated. Several states restrict depreciating labor on property claims. Ask whether labor was depreciated and on what authority.
- Roof age may be wrong. Permit records or your closing documents can prove a newer install than the file assumes.
Line Items Adjusters Miss
Review the estimate for these, because they are commonly omitted:
- Ice and water shield required by current code
- Drip edge, starter course, and ridge vent
- Decking replacement per square foot
- Ordinance or law coverage, which pays for code upgrades a 20-year-old roof did not require
- Steep-slope and two-story access charges
- Detach and reset for solar, satellite, and gutter guards
Supplements are normal, expected, and routinely approved when documented with photos and code citations. Our guide to working with your adjuster covers how to present them.
Deadlines That Cost People Money
Recoverable depreciation usually must be claimed within 180 days to 2 years of the loss date, depending on the policy and state. If your contractor stalls past that window, the money is gone. Confirm the deadline in writing at first notice of loss.
Protecting the Property While You Wait
Every policy requires you to prevent further damage. Emergency tarping is a covered expense and is separate from the roof line item. See emergency board-up and tarping. Delay long enough and the resulting interior water damage may be denied as neglect, which is exactly how mold claims get refused.
Storm Chasers and Deductible Offers
After a major hail event, out-of-state crews canvass neighborhoods. An offer to waive or absorb your deductible is insurance fraud in most states and puts your claim at risk. So does signing an assignment of benefits before you understand it. Read our contractor red flags list before signing anything on a doorstep.
Next Steps
Get an independent inspection, compare it to the carrier estimate line by line, document with dated photos, and pursue supplements and depreciation in writing. Related reading: hail damage inspection signs and storm and roof coverage basics.
Independent Restoration Services documents roof claims and completes the work. Call (615) 205-5523 or learn about IRS Roofs.