How much does a roof depreciate each year?
Yearly rates by expected life
- 20-year expected life: about 5 percent per year
- 25-year expected life: about 4 percent per year
- 30-year expected life: about 3.3 percent per year
- 40-year or longer life, as with many metal roofs: 2.5 percent or less per year
Which life applies depends on the material and the estimating guidelines the carrier uses. Three-tab shingles are usually assigned a shorter life than architectural shingles.
What that means in dollars
On a roof that would cost $14,000 to replace, a 4 percent rate means about $560 of depreciation for each year of age if every line were depreciated. At 12 years, that is roughly $6,700 withheld or deducted. In practice some labor lines carry little depreciation, so the real figure can be somewhat lower. On a replacement cost policy it comes back after the new roof is installed; on an actual cash value roof it does not.
Why the real number varies
- Georgia heat. Hot attics and strong sun age shingles faster, and visible wear can lead an adjuster to depreciate more.
- Maintenance. A clean, well-ventilated roof may be rated in better condition.
- Policy terms. Roof payment schedules use a fixed table instead of a yearly rate.
For taxes the answer is different: a roof on a residential rental is depreciated over 27.5 years, about 3.6 percent of its cost per full year, and a roof on your own home is not depreciated.
Related: roof age and insurance, ACV vs RCV, and roof payment schedules.