The claim is approved, the paperwork says your roof costs $20,000 to replace — and the check that shows up is for $12,500. Nobody panicked you through this part in advance, so let's do it now. Roof claim money moves in a specific pattern, and once you see it, every number on that settlement letter makes sense.
The Three Numbers That Run Your Claim
- RCV — Replacement Cost Value. What it costs to put a brand-new version of your roof on today, at today's prices.
- Depreciation. The value your old roof had already lost to age and wear. A 12-year-old roof with a 25-year life had used up roughly half its value.
- ACV — Actual Cash Value. RCV minus depreciation: what your old roof was “worth” the moment before the storm destroyed it.
How the Money Actually Flows
With the common RCV (replacement cost) policy, it goes like this:
- Check #1 — ACV, up front. After approval, the carrier pays actual cash value: RCV minus depreciation minus your deductible. In our example: $20,000 − $6,000 − $1,500 = $12,500.
- The work gets done. You sign with your contractor, the roof goes on, final invoice goes to the carrier.
- Check #2 — recoverable depreciation. The insurer releases the held-back $6,000. It was always yours — but only if you actually replace the roof.
- Your deductible is the only money that comes out of your pocket. $1,500, in this example, no matter which contractor you choose.
If You Have an ACV-Only Policy
Some policies — increasingly common on older roofs — pay actual cash value only, sometimes via a “roof payment schedule” rider. On the example above, you'd get $12,500 total and fund the rest yourself. If you're not sure which policy you hold, check your declarations page for the words “replacement cost” or “ACV” on the roof — beforestorm season. It's also worth asking your agent what an RCV endorsement costs; it's often modest.
Supplements: When the Roof Needs More Than the Scope Said
The adjuster scoped your roof from above. Then tear-off happens and reality votes: rotted decking, missing ice & water shield, code-required ventilation. Legitimate added costs get billed to the carrier as supplementswith photo documentation — that's the system working as designed, not your contractor “padding” anything. It's also why you want a contractor who documents everything with photos, like we showed in our adjuster guide.
Bring us your scope — free. We'll walk you through every line item, flag anything missing, and tell you exactly what your out-of-pocket will be before you commit to anything.
Taxes, Financing, and the Deductible
Insurance proceeds that restore your home generally aren't taxable income (confirm specifics with your tax professional). If the deductible itself is the squeeze, ask about financing — we can spread it into monthly payments that fit a normal budget. What matters is getting the roof on while the depreciation is still recoverable and the claim is still open.
How long do I have to complete repairs before depreciation expires?
Most policies give you a window — commonly 6 to 24 months from the date of loss — to complete work and claim recoverable depreciation. The deadline is in your policy; don't sit on an approved claim.
Can I keep leftover money if the roof costs less than the claim?
The insurer pays actual completed work — your contractor invoices the carrier, and depreciation is released against that invoice. A contractor promising 'cash back' from a claim is describing fraud.
Does my mortgage company get involved?
Often, yes. On larger claims, checks are commonly made out to you and your mortgage servicer jointly, and the servicer endorses or disburses in stages. Call their loss department early — it's routine, but it adds a few days.
My roof is old. Will insurance still pay RCV?
If your policy is RCV, age affects the size of the held-back depreciation, not your right to recover it — you still end up with a full new roof for your deductible. If your carrier has moved older roofs to ACV-only schedules, that's exactly the conversation to have with your agent this week.
We're a licensed & insured roofing company serving Greater Cincinnati & Northern Kentucky. Our name is our promise: honest inspections with photos you can see, straight answers about whether your roof actually needs work, and installs we document at every stage. Every inspection is free, and if your roof doesn't need replacing, we'll tell you that too. Call us at (513) 675-2699 or request your free inspection below.
