What is non-recoverable depreciation on a roof?
An example
A 16-year-old shingle roof would cost $15,000 to replace. Under an actual cash value roof endorsement, depreciation comes to $9,000, leaving $6,000 actual cash value. Minus a $1,500 deductible, the check is $4,500. The $9,000 is non-recoverable, so the homeowner's share of a $15,000 roof is $10,500.
Covering the gap
- Confirm the damage scope is complete, including gutters and other items that may still be on replacement cost.
- Ask about financing if the gap is large.
- Do not accept offers to hide the gap with a waived deductible; that is illegal in Georgia.
How roof age gets you here
Many insurers add these endorsements once a roof passes a certain age, often at renewal. Read renewal notices carefully, and ask your agent what it would take to get replacement cost back, such as a newer roof.
Check the age
Ask what install year the adjuster used. Permits, invoices, or home purchase records can correct it, and on a schedule even one year can change the percentage.
Related: roof payment schedules, roof age and insurance, and why a roofer cannot pay your deductible.