If you have replacement value insurance on your roof and if the adjuster approves the claim, then the typical course of action is as follows: The insurance adjuster will write an estimate for what it should cost to replace the damaged items based on current labor and material pricing. This is called the replacement cost value. They will then depreciate that value based on the age of your damaged property. This is called the actual value. The difference between the replacement value and the actual value is the depreciation. The insurance company typically writes a 1st check before the work starts which will be the actual value amount minus your deductible amount.

The contractor will write a proposal for the work, and they will match the replacement value amount. When the roof is replaced and the final invoice is sent to the insurance company, the insurance company will send a 2nd check for the amount of the depreciation that they originally withheld.

Your out of pocket expense will be your deductible. Your 1st check (actual value minus your deductible) plus your 2nd check (depreciation) plus your deductible will equal the contract price. This is typically how it works. You get the damaged items replaced for the amount of your deductible. There are ways to recover some of your deductible, but typically that is by not repairing or replacing some of the damaged items on the claim. Sometimes gutters, downspouts, fascia have damage that is included in the claim, but if these dents are not compromising your home, a homeowner may decide not to replace those items. Since the 1st check from the insurance company partially covers those items, that allocated money can help “recover” your deductible. You do not have to do everything on the claim. If you do not replace a “damaged” item, then you cannot recover the depreciation on that item, and you cannot claim that same damage in a future claim.