Roof Replacement: ACV, Recoverable Depreciation, and Matching
A Cape Cod homeowner files a wind claim after a nor'easter. The roof is 22-year-old three-tab asphalt, 28 squares total; the insurer agrees wind damaged 12 squares and writes an RCV estimate of $18,400 with $9,900 ACV and $8,500 depreciation. The deductible is $2,000. The contractor says the shingle is discontinued and the entire roof must be replaced to match, quoting $31,000. The policy is replacement cost on the dwelling, with a 180-day period to complete repairs and claim recoverable depreciation. The insurer has paid the ACV portion. The homeowner asks whether he can collect the full $31,000 now. The insurer’s estimate includes $1,200 for permits and $900 for a dumpster; the contractor adds $6,000 for decking not yet observed and $4,700 for matching.
1. Calculate the ACV payment and the recoverable depreciation, and explain when the depreciation becomes payable.
Read the worked answer
The net ACV payment is the ACV minus the deductible: $9,900 - $2,000 = $7,900. The $8,500 depreciation is withheld, not denied. If the homeowner completes the repairs within the policy’s 180-day period and incurs the replacement cost, the recoverable depreciation can be claimed, usually up to the amount actually spent and subject to the policy limit.
If the insurer approves the $18,400 RCV scope, the total payable after completion would be $18,400 - $2,000 = $16,400. Since $7,900 was already paid, the remaining recoverable depreciation would be $8,500. That reconciles: $7,900 + $8,500 = $16,400.
The homeowner cannot collect the contractor’s full $31,000 now merely because the contractor quoted it. The extra $12,600 must be supported by covered damage or policy provisions. The $6,000 for unobserved decking is not payable until decking damage is documented at tear-off. The $4,700 matching charge depends on policy language and whether matching is reasonably required. Recoverable depreciation is paid after completion, not as an up-front entitlement.
2. Evaluate the contractor’s matching argument and the $6,000 decking charge.
Read the worked answer
Matching is a coverage argument, not an automatic rule. The starting point is the policy language. A standard replacement-cost dwelling policy pays for direct physical damage and necessary repairs, but it does not necessarily pay to replace undamaged shingles solely because a discontinued shingle cannot be perfectly matched. If the policy contains a matching endorsement, or if the insurer’s own scope includes matching, the argument is much stronger. Without that language, the insured must show that repairing only 12 squares cannot produce a reasonably uniform roof or that the insurer’s repair plan is not feasible.
The contractor’s discontinuation evidence is useful: manufacturer documentation, distributor confirmation, and photos of the existing shingle. But a 22-year-old roof also raises betterment and depreciation issues. The insurer may owe the cost to match the damaged slope or the reasonable repair, not a free upgrade to a new 28-square roof.
The $6,000 decking charge is premature. Decking is paid only if it is damaged and needs replacement, and that is usually confirmed after tear-off. Submit photos of soft or rotted decking, a code citation if applicable, and a supplement. Do not demand unobserved decking as part of the initial settlement.
3. What documentation should be submitted to support the supplement and the recoverable depreciation claim?
Read the worked answer
Submit a package that ties every dollar to a policy provision. Include the contractor’s itemized estimate, the insurer’s estimate, and a line-by-line comparison showing what is disputed. For matching, include manufacturer discontinuation letters, distributor statements, photos of the existing shingles, and a written explanation from the contractor of why a repair-only scope will not match. For decking, include tear-off photos, moisture or rot readings, and the code requirement if replacement is mandated.
For recoverable depreciation, include the signed contract, invoices, proof of payment, permits, final inspection, and a certificate of completion. The claim should be submitted within the 180-day period or any extension granted in writing. If the insurer disputes the amount, request a written explanation of the depreciation calculation and consider appraisal if the policy provides it.
Keep the supplement organized by category: shingles, labor, permits, dumpster, decking, and matching. Do not commingle the $31,000 quote with unsupported items. A clean, documented supplement is more likely to produce a paid supplemental check than a demand for the full quote.