Learn how depreciation is calculated by insurance companies.
Roof hail damage insurance claim depreciation.
When you make a claim for roof damage the insurance company will write you a check for the actual cash value acv of your roof less your deductible.
The full replacement cost of the roof is 10 000.
Dealing with roof damage a roofing insurance claim and the general aftermath of a major storm hurricane or other natural disaster can be one of the most stressful times in your life.
Due to the amount of recent storm damage claims in north carolina and shady out of state roofing company practices insurance companies are now auditing 1 out of every 3 claims.
They will want absolute proof that storm damage is the cause of the roof leak to determine this insurance company will send out its own adjuster someone that works for the insurance company.
If you profit in any way from your insurance claim such as not paying your deductible or pocketing any insurance money you and possibly your contractor are.
For example if your roof is 25 000 new and is 15 years old on the date of a claim and the insurance company attributes a rate depreciation of 1000 per year on the roof then they will subtract the depreciation from the value of the new roof and only pay you the.
The recoverable depreciation also happens to be 5 000 10 000 replacement value less 5 000 actual cash value.
The age and condition of your roof will play a big part in the value of your hail damage claim.
Example of acv vs.
You should also be aware that with recoverable depreciation and the roof age and insurance company can withhold.
Let s say it will take 20 000 to replace your roof.
The insurance adjuster depreciated the roof 50 an arbitrary number based on its age so the actual cash value of the roof is now 5 000.
The acv is the amount it would take to replace your roof minus the depreciation calculated.
This difference could amount to thousands of dollars depending on the age of your roof.
Actual cash value will give you the depreciated value at the time of the loss on your roof.
