Depreciation in Roof Insurance Claims Explained

Depreciation significantly impacts insurance settlements, but understanding the process helps maximize recovery.

How Depreciation Works

Insurance companies depreciate roofs based on age and expected lifespan. Asphalt shingles typically depreciate over 20-25 years on a straight-line basis. A 10-year-old roof is considered 40-50% depreciated. This depreciation is withheld from initial claim payments.

Recoverable vs Non-Recoverable

With Replacement Cost Value (RCV) policies, depreciation is recoverable—you receive it after completing repairs. With Actual Cash Value (ACV) policies, depreciation is non-recoverable—you never receive it. Most Georgia homeowners have RCV policies, making depreciation recovery essential.

The Recovery Process

After claim approval, you receive an initial payment equal to replacement cost minus depreciation and deductible. Once repairs are completed, you submit final invoices to recover the depreciation holdback. Capital City Roofing handles all depreciation recovery paperwork, ensuring you receive every dollar.

Maximizing Depreciation Recovery

Complete all approved work to qualify for full recovery. Provide detailed final invoices matching the claim estimate. Submit recovery requests promptly after completion. Our expertise ensures smooth depreciation recovery, typically within 2-3 weeks of project completion.

Policy Verification

Verify whether you have RCV or ACV coverage. If you have ACV, consider upgrading to RCV at renewal for better protection. We help homeowners understand their policies and maximize benefits. Learn more at our depreciation guide.