www.mrca.org  —  Midwest Roofer
17
LEGALLY SPEAKING
expected lifespan of the roof, rather than paying full 
replacement cost on every loss. That shift is showing 
up in the field through changes in how roofs are 
actually being valued at the time of loss.
ACV on Roofs Is No Longer the Exception
Most contractors have already seen this play out 
in the field. The issue is not whether depreciation 
exists. The issue is how aggressively it is now being 
applied to roofs, even under policies that still read as 
replacement cost.
What is showing up more often is a separation. 
The structure may be covered at replacement 
cost, but the roof is being handled differently, 
either through direct ACV language or through 
endorsements that produce the same result. That 
difference is not always clear to the homeowner at 
the start of the claim. It usually shows up later, when 
the numbers come back and the scope does not 
match the payment.
At that point, the job changes. What looked like 
a full replacement becomes a gap that has to be 
addressed, either through out-of-pocket cost, a 
scaled-back scope, or a stalled project. That shift is 
what contractors are dealing with now.
Payment Schedules Are One of the New Tools
One of the more recent developments is the 
use of roof surface payment schedules. Instead of 
calculating depreciation on a case-by-case basis, 
the policy uses a fixed table. The table assigns a 
percentage based on the age and type of the roof, 
and that percentage controls the claim.
A typical schedule looks like this: 
Adapted from a standard roof system payment schedule endorsement.
The important part is not the table itself. It is 
what the table does. It locks the payment into a 
percentage before the claim is even evaluated. A 
20-year-old roof may only be paid at 60 to 75 percent 
of replacement cost, regardless of condition.
The Fine Print That Controls the Claim
These endorsements are driven by policy 
language that most homeowners never read. In 
many cases, the age of the roof comes from the 
installation year listed in the declarations. If that date 
is wrong, the homeowner has to prove the correct 
date with documentation like an invoice or receipt. 
If they cannot prove it, the policy number stands. 
That detail alone can change the value of a claim by 
thousands of dollars.
What Contractors Can Do With This 
Information
At this point, most contractors have already 
seen how these claims play out. The issue is not 
understanding that payments are lower. The issue is 
identifying it early enough to decide how to approach 
the job.
It is reasonable to ask to see the policy and check 
how the roof is being treated before getting too far 
into the process. If the roof is subject to ACV or a 
payment schedule, that changes the job from the 
start. It affects how much time to spend helping 
with the claim, how to set expectations with the 
homeowner, and whether the project makes sense to 
pursue in the same way.
A straightforward way to handle that conversation is:
“Before we get too deep into this, I want to see how 
your policy treats the roof. Some of these policies 
are paying a lot less on older roofs, and that can 
change how we approach the job.”
That keeps the focus where it belongs. It helps 
the contractor make a business decision while 
making sure the homeowner understands that 
coverage may not match expectations. 
Contractors should not step into deciding what 
the carrier will pay or how the claim should be 
resolved. The role is to spot the issue early and 
adjust accordingly.
What This Means for the Industry
This is a shift in how roof claims are being 
handled. The work is still there, but the way 
it gets funded is changing. Homeowners may 
need to contribute more, and expectations need 
to be set earlier in the process. Contractors who 
recognize that early and adjust their approach will 
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