All the calculations heroAll The Calculations

finance calculator

Roof Claim Depreciation

Estimate ACV payout, recoverable depreciation, and total potential claim on a roof.

Results

Depreciation percent
4000.00%
Depreciation withheld
$4,800
ACV payout (initial check)
$5,700
Recoverable depreciation
$4,800
Total potential payout
$10,500

How to use this calculator

  1. Enter replacement cost, roof age, expected life, and your deductible.
  2. Indicate whether you have replacement cost coverage (RCV) or ACV-only.
  3. Review depreciation percent/amount, ACV payout, potential recoverable depreciation, and total potential payout.
  4. Use actual contractor estimates for replacement cost to improve accuracy.

Inputs explained

Roof replacement cost
Contractor’s estimated full replacement cost, including labor/materials.
Roof age
Years since installation or last replacement.
Expected life
Typical lifespan in years for your roof type (e.g., 25–30 for many asphalt shingles).
Insurance deductible
Your policy deductible applied to the claim.
Replacement cost policy?
Yes if your policy pays recoverable depreciation after repairs; No if ACV only.

How it works

Depreciation percent = roof age ÷ expected life, capped at 100%.

Depreciation amount = replacement cost × depreciation percent.

ACV payout (initial check) = replacement cost − depreciation − deductible.

If your policy includes replacement cost, recoverable depreciation may be paid after proof of completion; total potential payout = replacement cost − deductible.

Formula

Depreciation % = min(1, roof age ÷ expected life). Depreciation $ = replacement cost × depreciation %. ACV payout = replacement cost − depreciation $ − deductible. Recoverable depreciation = depreciation $ if RCV; else 0. Total potential payout = (replacement cost − deductible) if RCV; else ACV payout.

When to use it

  • Estimating the out-of-pocket cost after a roof claim.
  • Comparing ACV-only vs RCV policy outcomes before filing or renewing.
  • Planning whether to proceed with a claim or self-pay minor damage.
  • Understanding how age and deductible reduce the initial check.

Tips & cautions

  • Check your policy for code upgrade coverage, limits, and exclusions—this tool doesn’t include ordinance/code costs.
  • Photograph damage and keep contractor estimates; actual replacement cost drives payouts.
  • If you have multiple layers or decking issues, real costs may exceed simple estimates—use a contractor quote.
  • Know your deductible and whether wind/hail deductibles differ (often percentage-based).
  • If a temporary repair is needed to prevent further damage, keep receipts—insurers often cover reasonable mitigation expenses.
  • Request multiple quotes to validate replacement cost; lowball estimates can reduce your payout.
  • Understand deadlines for filing, completing repairs, and submitting invoices to avoid losing recoverable depreciation.
  • Keep receipts and photos for all work; documentation helps if you need supplements or to recover depreciation.
  • Simplified straight-line depreciation; actual insurer calculations may differ.
  • Does not include code upgrades, supplements, multiple layers, or overhead/profit specifics.
  • Does not model separate wind/hail percentage deductibles or policy caps.
  • No ALE (additional living expenses) or other coverage parts included.
  • Assumes work is completed; does not address partial repairs or when recoverable depreciation is denied.
  • Does not account for regional pricing differences or materials availability; use local contractor estimates.
  • Does not model deductible waivers, matching provisions, or cosmetic-damage exclusions.
  • Does not include tax implications or lender requirements for insurance claim proceeds.
  • Does not handle mortgagee endorsements or how insurers disburse funds (joint checks, inspections).

Worked examples

RCV policy, mid-life roof

  • Replacement cost: $12,000. Age: 12 years. Expected life: 30 years. Deductible: $1,500. Policy: RCV.
  • Depreciation % = 12/30 = 40%; depreciation $ = $4,800.
  • ACV payout = 12,000 − 4,800 − 1,500 = $5,700.
  • Recoverable depreciation = $4,800; total potential payout = 12,000 − 1,500 = $10,500.

ACV-only policy

  • Replacement cost: $10,000. Age: 20 years. Expected life: 25 years. Deductible: $1,000. Policy: ACV.
  • Depreciation % = 20/25 = 80%; depreciation $ = $8,000.
  • ACV payout = 10,000 − 8,000 − 1,000 = $1,000.
  • Recoverable depreciation = $0 (ACV policy). Total potential payout = $1,000.

Older roof near full depreciation

  • Replacement cost: $14,000. Age: 28 years. Expected life: 30 years. Deductible: $2,000. Policy: RCV.
  • Depreciation % capped at 100%? 28/30 = 93.3% → $13,066 depreciation.
  • ACV payout ≈ 14,000 − 13,066 − 2,000 = negative; floored at $0 (some policies may pay nothing after deductible).
  • Recoverable depreciation ≈ $13,066; total potential payout = 14,000 − 2,000 = $12,000 if repairs completed and allowed by policy.

Wind/hail % deductible adjustment

  • Replacement cost: $18,000. Age: 10 years. Expected life: 30 years. Wind/hail deductible: 2% of insured value ($400,000) = $8,000. Policy: RCV.
  • Depreciation % = 10/30 = 33.3%; depreciation $ ≈ $6,000.
  • ACV payout = 18,000 − 6,000 − 8,000 = $4,000.
  • Recoverable depreciation ≈ $6,000; total potential payout = 18,000 − 8,000 = $10,000 (if fully approved).

Deep dive

Use this roof claim depreciation calculator to see how age and deductible reduce your initial ACV check and what a replacement cost policy could pay after repairs.

Enter replacement cost, roof age, expected life, deductible, and whether you have RCV to estimate depreciation, ACV payout, recoverable depreciation, and total potential payout.

Great for understanding out-of-pocket costs before filing a claim or comparing ACV vs RCV policies during renewal.

If you have a percentage wind/hail deductible, convert it to dollars and plug it in to avoid surprises when a storm claim hits.

Check code upgrade coverage separately; this tool focuses on core roof replacement, not ordinance/law adders.

Use contractor quotes (not ballpark figures) for replacement cost; accurate inputs make the ACV/RCV estimate more realistic.

If your adjuster includes overhead/profit or multiple layers, update the replacement cost and rerun to see revised payouts.

Track timelines: claims often have deadlines for completing work and submitting invoices to recover depreciation—plan cash flow accordingly.

If initial ACV is low, ask your contractor about supplements for hidden damage; update replacement cost here if approved.

Revisit your deductible choices at renewal—high wind/hail deductibles can dramatically lower payouts; this calculator shows how that hits ACV.

Check how your carrier disburses funds (joint checks, inspections, mortgagee sign-off) so you can plan cash flow for repairs.

FAQs

What’s the difference between ACV and RCV?
ACV pays depreciation upfront and may leave you short of replacement cost. RCV can pay recoverable depreciation after repairs, reducing out-of-pocket if you complete the work per policy terms.
Are code upgrades included?
Often limited or excluded. This tool does not include code upgrade costs; check your policy for ordinance/law coverage.
Do multiple shingle layers change the calculation?
They can increase replacement cost. Enter the full estimated cost including tear-off of multiple layers for accuracy.
How do percentage deductibles affect this?
This tool assumes a flat deductible. If you have a 1–2% wind/hail deductible, compute the dollar amount and enter it here.
Will the insurer always pay full recoverable depreciation?
Only if you meet policy conditions (complete work, submit invoices, within deadlines). Some policies cap payouts or exclude certain items.
Do I need multiple estimates?
Not required by this tool, but multiple contractor estimates help substantiate replacement cost and support supplements if the adjuster’s estimate is low.
How do supplements factor in?
Supplements can increase replacement cost (e.g., hidden damage). This tool uses a single replacement cost input; update it if a supplement is approved.
Are matching requirements covered?
Some policies include/require matching (siding/shingles). This tool ignores matching rules; if matching drives higher costs, add that to replacement cost.

Related calculators

construction

Roofing Shingles Calculator

Estimate roofing squares and bundles needed for asphalt shingles, factoring in pitch and waste.

finance

Umbrella Insurance Coverage Estimator

Estimate how much umbrella coverage to consider based on net worth, existing liability limits, and future income risk.

Simplified roof claim estimate. Does not include code upgrades, supplements, percentage deductibles, or insurer-specific rules. Depreciation and payouts vary by policy and adjuster; confirm with your carrier and contractor.