Roof Settlement Check

Step by step

1. Each roof material maps to a broad expected service life (3-tab asphalt 20 years, architectural asphalt 30, metal 45, tile or slate 50, wood shake 25).
2. Depreciation = roof age ÷ expected service life, capped at 100%.
3. Replacement cost (RCV) settles at the full replacement figure, with no depreciation applied — the depreciation shown on that basis is 0%.
4. Actual cash value (ACV) settles at replacement cost minus that depreciation.
5. A payment schedule settles at the same percentage but never falls below a typical 20% floor of replacement cost. When the floor binds, the depreciation shown is what actually came off — 80% — rather than the straight-line figure.
6. When the basis is unknown, the ACV figure is shown as the cautionary illustration — it is the more conservative of the two depreciating bases.
7. When both a Coverage A figure and a wind/hail deductible percentage are entered, the deductible (Coverage A × percentage) comes off what the basis pays before the shortfall is worked out. Leave either blank and no deductible is applied.

The formula

Depreciation = min(1, roof age ÷ expected life). ACV = replacement cost × (1 − depreciation). Scheduled = replacement cost × max(floor, 1 − depreciation). Deductible = Coverage A × wind/hail % (both entered, else 0). Payment = max(0, settlement − deductible). Shortfall = replacement cost − payment.

Assumptions and their default values

Some of these change with the state you select.

Where the figures come from

• Broad published roof service-life ranges by material (illustrative midpoints, reviewed periodically).

Important disclosures

1. This tool is educational only. It illustrates potential exposure using the assumptions shown — it is not insurance advice, a price, or an offer of coverage, and it does not determine whether any coverage amount is right for you. Policy language varies; review your actual policy and discuss your situation with a licensed insurance professional.
2. Expected service lives are broad published averages. Real roof condition depends on installation quality, ventilation, pitch, and local weather — an old roof in good condition and a young roof in poor condition both exist.
3. Actual settlement depends on your policy language, the cause of loss, your deductible, and in many cases whether the roof is repairable rather than replaceable. Payment schedules vary widely between carriers and are not standardised.
4. This illustration applies depreciation on a straight-line basis. Carriers use their own schedules, which may depreciate faster or slower and may treat some materials differently.
5. Real roof payment schedules are frequently harsher than straight-line actual cash value for asphalt shingles, reaching their floor well before the service lives used here. Where a schedule applies, the actual figure can sit below this illustration.
6. The wind/hail deductible is illustrated only when both a Coverage A figure and a percentage are entered, as Coverage A × percentage. Whether a percentage deductible applies to a given loss, and to which perils, depends on your policy and your state.