Why your first check looks small
Most replacement-cost policies pay in two stages. First comes actual cash value (replacement cost minus depreciation) less the deductible. The depreciation is held back and released when you finish repairs, within the window your policy allows. This calculator reproduces that math with straight-line depreciation: age divided by expected life, limited by a cap.
Where depreciation disputes start
- Age: a roof replaced eight years ago is sometimes recorded as the house’s age.
- Life expectancy: steel siding and metal roofing last far longer than the defaults some estimates use.
- Labor: whether labor is depreciated depends on policy language and practice; ask how your estimate treats it.
- Non-recoverable roofs: some Montana policies settle older roofs on a payment schedule or ACV basis. Tick the box to see that effect.
Depreciation is part of the amount of loss, so an appraisal panel can value it. If the figures in the carrier’s estimate look wrong, our estimate review checks them line by line. Results here are illustrative.
Questions about this tool
Is depreciation always recoverable?
Not always. It depends on whether the policy (or a roof endorsement) settles at replacement cost or actual cash value, and whether you complete repairs within the policy’s timeframe.
What life expectancy should I use?
Use realistic service lives for the actual material: a laminated shingle roof, steel siding and interior paint all age differently. Estimating software has defaults, but they can be challenged.
Does the deductible come out of the holdback?
Usually the deductible is taken from the first payment, as modeled here. If the deductible is larger than the ACV, the first check may be zero.