Roof Insurance Deductible Calculator
Last reviewed How we calculate
Many policies set the wind and hail deductible as a percentage of the insured value of the house, not as a flat amount, and on an older roof depreciation reduces the payout further. This shows what both do to a roof claim: the deductible in dollars, the first check, the amount held back and what you end up paying.
Roof claim after deductible and depreciation
What a percentage or flat deductible and depreciation do to a roof claim: the first check, the amount withheld and what you pay.
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You pay out of pocket, US dollars
- Your deductible
- Depreciated value of the roof
- First check, depreciated value less deductible
- Depreciation withheld until the work is done Zero on an actual cash value policy, where it is never paid.
- Total the policy pays
The deductible is as large as the amount the policy would pay, so a claim would pay nothing. Paying for the work yourself keeps your claims history clean.
Compare the payout with what you would pay without a claim. A claim can raise your premium or affect renewal, so ask your insurer before you file.
Straight-line depreciation is a common starting point, but insurers use their own schedules and some policies pay full replacement cost. Your policy wording and your adjuster decide the figures; this shows what a percentage deductible and depreciation do to a payout.
How the calculation works
A percentage deductible is the percentage times the insured value of the house. Depreciation is straight-line: the roof’s age over its expected life, applied to the replacement cost, which gives the depreciated value. On a replacement cost policy the first check is the depreciated value less the deductible, and the withheld depreciation is released once the work is done. On an actual cash value policy only the depreciated value less the deductible is ever paid.
A worked example
A house insured for $300,000 with a 2 percent deductible has a $6,000 deductible. A $15,000 roof, 12 years into an expected 25-year life, has depreciated by 48 percent to a value of $7,800.
- On a replacement cost policy, the first check is $1,800, $7,200 is withheld until the work is done, the policy pays $9,000 in total and you pay $6,000.
- On an actual cash value policy, the policy pays $1,800 and you pay $13,200.
Before you claim
Read how your policy settles roof claims and what the wind and hail deductible is; does home insurance pay for a new roof explains both. If the payout is small against the deductible, paying for the work yourself may be better than a claim that raises your premium. How to pay for a roof replacement covers the other routes.
Frequently asked questions
What is a typical roof deductible?
Either a flat amount, often $1,000 or $2,500, or a percentage of the insured value for wind and hail, commonly 1 to 5 percent. Your declarations page shows which applies.
What is recoverable depreciation?
On a replacement cost policy the insurer often withholds the depreciation from the first check and releases it after the work is complete and you have shown what was spent.
Is this the figure my insurer will use?
Not necessarily. Insurers use their own depreciation schedules and policy terms. This shows how a deductible and depreciation affect a payout so you can ask better questions.