How are roof claims settled?
The homeowner’s policy typically provides roof coverage on an actual cash value basis. That means that the company will apply depreciation to the roof, based on the age and condition of the roof. Some policies provide roof coverage on a replacement cost basis. In that case, the company will pay the actual cash value (depreciated amount) at the time of the loss, and then pay the additional amount to actually repair or replace once the repairs have been made or at least contracted to be made.
