Why Your Insurance Didn’t Cover the Full Roof: Understanding Roofing Schedules and Depreciation in Homeowners Claims

If you’ve recently filed a homeowners insurance claim for roof damage—whether from hail, wind, or a storm—you might have experienced a frustrating surprise: the check from your insurance company is significantly less than the actual cost to replace your roof.

You’re not alone. Many homeowners don’t realize their insurance policy includes a roofing schedule that applies depreciation to their roof’s value. At MD Roofing and Solar, we deal with this issue every day—and we want to help you understand what’s going on and what your next steps should be.

What Is a Roofing Schedule?
A roofing schedule is a clause in some homeowners insurance policies that limits how much your insurer will pay for roof damage based on the age and type of your roof.

Instead of paying the replacement cost value (RCV)—which covers the full cost to replace the roof—your insurer pays actual cash value (ACV), which is the RCV minus depreciation.

In simple terms:
RCV – Depreciation = ACV (What the Insurance Pays You)

How Depreciation Affects Your Payout
Your roof loses value as it ages—just like a vehicle. That depreciation is used to reduce your claim payout. Here’s what it can look like:
Roof Age        Payout % of Replacement             
0–5 years                      Up to 100%
6–10 years                     60–80%
11–15 years                  30–50%
16+ years                       0–25%

This means you could be left responsible for thousands of dollars even when your claim is approved.
​That gap can be a serious financial hit, especially if you weren’t expecting it.

Why Insurance Companies Use Roofing Schedules
Insurance companies implement roofing schedules to limit large payouts, particularly in high-claim areas like Colorado, where hail and wind damage are common. While this helps insurers manage risk, it often leaves homeowners holding the bag.

What It Means for You
Just because your claim was approved doesn't mean you're getting a check for the full amount of the work needed. If your roof is older, your payout could be dramatically reduced—and you’ll be expected to cover the difference out of pocket.

We regularly see homeowners caught off guard by this. One of our clients had a 14-year-old roof with storm damage and only received 40% of the total replacement cost from their carrier.

What You Can Do Next

At MD Roofing and Solar, we help homeowners navigate this situation every day.
Here’s what we recommend:
​

1. Review Your Policy
   Not all policies are the same. Look for key terms like “actual cash value,” “depreciation,” or “roof schedule.” If you’re unsure, we’ll help you break it down.
2. Get a Professional Roof Inspection
   Our team provides free inspections and insurance claim support. We’ll review the insurance estimate, identify any missing items, and make sure your claim is accurate and fair.
3. Explore Financing If Needed
   If you’re underpaid due to depreciation, don’t panic. We offer flexible financing options to help you get the work done without delay.
4. Upgrade Your Coverage (Before the Next Storm)
   After your claim is settled, we recommend speaking with a trusted insurance advisor about switching to a replacement cost value (RCV) policy for the future. It’s usually just a few extra dollars a month and can save you thousands when the next storm hits.

Final Thoughts from MD Roofing and SolarRoofing schedules and depreciation are confusing—and most homeowners only find out about them after a damaging storm. That’s why MD Roofing and Solar exists: to be your advocate in the insurance process and help you get the roof you need without being blindsided.

If you’ve received a low payout or need help understanding your claim, call us today at 719-591-2142 or visit our website to schedule a free inspection and policy review. Let’s make sure you’re not left paying for something you didn’t expect.

MD Roofing and Solar
📞 719-591-2142
📍 Proudly serving Colorado homeowners with honest, experienced storm damage support