How does an insurance estimate for a roof replacement work?
Short answer. An insurance estimate for roof replacement is the adjuster's line-by-line price for tearing off and replacing your roof, built from roof measurements and a regional price list. It shows the replacement cost, subtracts depreciation and your deductible, and the result is your first payment, with any recoverable depreciation paid after the work is done.
The parts of the estimate
- Line items. Remove and replace shingles by the square, felt or synthetic underlayment, starter, ridge cap, drip edge, flashing, pipe jacks, vents, and labor adders such as steep and high roof charges.
- Waste. Shingle quantities include a waste factor because cut pieces at hips and valleys cannot be reused.
- Sales tax on materials, and sometimes general contractor overhead and profit.
- The summary. Replacement cost value, less depreciation, equals actual cash value; less the deductible equals the net payment.
How to read your payment from it
Say the estimate shows $14,000 replacement cost, $4,000 recoverable depreciation, and a $1,500 deductible. The first check is $8,500. After the roof is finished and invoiced, the insurer releases up to the $4,000 it held back. You pay the $1,500 deductible to your roofer as part of the job.
Comparing it with your roofer's estimate
Line up quantities first: total squares, ridge and hip footage, valley footage, and eave length for drip edge and starter. A wrong square count throws off everything else. Then look for missing items. If something is missing or underpriced, the roofer should submit a supplement with photos and measurements rather than arguing over the total.
Related: Xactimate roof estimates explained, roof supplements, and overhead and profit.