Does roof age change what a house insurance claim pays?
Three ways age enters the math
- Replacement cost: the insurer subtracts depreciation from the first check, then releases it when you finish the work. Age affects timing, not the total.
- Actual cash value: depreciation is subtracted and never paid back. The older the roof, the bigger the gap.
- Payment schedule: a table in the endorsement sets the percentage paid by roof age and material, regardless of the actual depreciation.
How depreciation is typically figured
Many estimates depreciate shingles on a straight line over an expected life. If a shingle is assigned a 30 year life and the roof is 15 years old, roughly half its value may be depreciated. Labor is depreciated in some estimates and not in others, depending on the insurer and policy. The estimate should show the depreciation for each line item, and you can ask how it was calculated.
An example
Replacement cost is $16,000 and depreciation on a 15 year old roof is $7,000, with a $1,500 deductible. Replacement cost coverage pays $14,500 in total after completion. Actual cash value pays $7,500. A payment schedule pays whatever percentage the table sets for that age.
Questions to ask
Was depreciation applied to labor? Was the roof age correct? Is the depreciation recoverable, and what is the deadline? See recoverable depreciation, payment schedules and ACV versus RCV.