I get where you’re coming from, but I’d still rather have insurance than risk a total loss. Stuff like hail damage is unpredictable, and one bad storm could wipe out years of savings. Yeah, the depreciation stings, but I’d hate to be on the hook for the whole thing.
Yeah, I totally get that. Insurance is kind of like paying for peace of mind, even if it stings when the payout doesn’t match what you shelled out. I had a neighbor get slammed with hail last year—roof looked like Swiss cheese. The insurance check barely covered half the repairs, but at least it was something. Without it, he’d have been in way deeper trouble. Depreciation sucks, but those storms don’t care how new your roof is...
Depreciation sucks, but those storms don’t care how new your roof is...
That’s the part I’m struggling to wrap my head around. If you pay for coverage, why does the age of the roof matter so much? Is there a way to get around that, or are you just stuck with whatever “actual cash value” they decide?
Insurance And Depreciation: Been There With My Car, Now My Roof
I get where you’re coming from. I ran into the same thing with my car a few years back—hail trashed the hood and roof, and the insurance payout was way less than what the body shop quoted. Turns out, it’s the same logic with houses. The older your roof (or car), the less they’ll pay, because they factor in “wear and tear.” Basically, they’re not gonna give you the money for a brand new roof if yours was already halfway through its life.
Here’s how I’ve dealt with it, step by step:
1. Check your policy. Some policies only cover “actual cash value” (ACV), which means they subtract depreciation. Others offer “replacement cost value” (RCV), which pays for a new roof minus your deductible. RCV costs more, but it’s worth it if you want to avoid this mess.
2. If you’re stuck with ACV, you’re pretty much at their mercy unless you can prove the roof was in better shape than they claim. Photos, maintenance records, anything showing you took care of it can help bump up the payout a bit, but don’t expect miracles.
3. When you renew, ask about RCV or any endorsements that cover full replacement. It’ll cost more, but after getting burned once, I switched my car and home policies to full replacement coverage. The premium hike stings, but at least I’m not left eating thousands next time.
4. Some insurers won’t even offer RCV if your roof is over a certain age (like 10-15 years), so timing matters. If your roof’s getting up there, you might be stuck with ACV no matter what.
It’s frustrating, but insurance companies are always looking for ways to pay less. They see an old roof as a “pre-existing condition,” basically. I wish I’d known all this before my first claim—would’ve saved me a lot of headaches (and cash).
If you’re still mid-claim, double-check everything they used to calculate depreciation. Sometimes they get the age or materials wrong, and you can push back. But yeah, unless you’ve got RCV, you’re mostly stuck with what they offer. Not fair, but that’s how they play the game.
Honestly, I see this all the time—people get blindsided by ACV payouts. It’s wild how fast depreciation eats into what you thought you’d get. One thing I always tell folks: keep every receipt and photo of repairs or upgrades, even if it seems minor. Sometimes you can squeeze a bit more out of the claim if you show the roof was in better shape than they guessed.
Curious, did your insurer offer any kind of “recoverable depreciation” option, or was it just straight ACV? Some companies let you claim back the depreciated amount after you actually replace the roof, but not everyone knows to ask for it.
