what does the depreciation amount mean on the estimate I received to repair my roof?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jan 12, 2018

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Insurance Question from Marietta, GA

Asked on 01/12/2018

what does the depreciation amount mean on the estimate I received to repair my roof? I had damage from limbs falling and now need a new roof. On the estimate i received from the adjuster, it has the amount to repair roof , then it has a depreciation amount. I do not understand what this is. I know what depreciation is I just dont understand what role it plays here.

Answer given on January 14, 2018

Homeowner insurance usually pay replacement cost for damage to a home. However, for some items, such as the roof, there can be depreciation taken when settling the claim.

Depreciation is based on the replacement cost of the roof, less the age of the roof.  If the life expectancy of the roof is 20 years, and roof is 10 years old, the insurance company can depreciate the claim by 50% due to the age. Therefore you would only get 50% of the cost to repair or replace your roof.  Your deductible would also apply to the amount you would receive for the roof.

You can try to negotiate the amount depreciated with the adjuster. If they will not negotiate, ask for a supervisor. You may be able to get more money since the damage caused by the tree limbs had no effect due to the age of the roof.

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