How does depreciation work on an insurance roof replacement?
Why roofs carry so much depreciation
Shingles have a shorter expected life than most of a home's structure, and Georgia's heat speeds up visible aging. By the time hail hits a 15-year-old roof, the adjuster may depreciate the shingle lines by half or more.
What happens during the replacement
- The first check covers actual cash value minus the deductible, and the crew starts work.
- If rotted decking or missing code items turn up, a supplement goes in with photos.
- After completion the final invoice is submitted, and the holdback plus supplement amounts are released.
After the new roof
Your depreciation clock resets. Send your insurer the completion date and the material type; it may affect your roof age rating, eligibility for replacement cost on the roof, or discounts for impact-resistant shingles. Keep the invoice and warranty paperwork with your policy records.
When depreciation is not recoverable
If the policy pays roofs at actual cash value or through a payment schedule, the roof depreciation is permanent. Plan for that gap before signing a contract, and remember that other items on the claim, such as gutters or interior repairs, may still be recoverable.
Related: roof age and insurance, recoverable depreciation on a roof, and roof supplements.