Roof depreciation is one of the most misunderstood parts of homeowners insurance — especially in Missouri and Arkansas, where hail and wind storms are common. Many homeowners assume their roof will be fully replaced after storm damage, only to discover their policy settles claims differently. So What Is A Roof Depreciation Schedule?
Understanding how roof depreciation works before a loss occurs can prevent costly surprises during a claim.
What Is Roof Depreciation?
Depreciation is the reduction in your roof’s value over time due to:
- Age
- Normal wear and tear
- Weather exposure
- Material lifespan
Insurance companies factor depreciation into claim payments depending on how your policy is written.
Actual Cash Value (ACV) vs. Replacement Cost
Many homeowners insurance policies settle roof claims on an Actual Cash Value (ACV) basis rather than full replacement cost.
Actual Cash Value (ACV)
With ACV coverage, the insurance company pays:
Replacement Cost – Depreciation = Claim Payment
This means older roofs receive smaller payouts.
Example:
If your roof is 15 years old and storm damage requires a full replacement, the insurance company may subtract years of depreciation before issuing payment. You are responsible for:
- The depreciated amount
- Your deductible
- Any upgrade costs
This can leave homeowners paying thousands out of pocket.
Replacement Cost Coverage
Some policies offer Replacement Cost coverage, which reimburses the full cost to replace the roof (minus your deductible), regardless of age.
However, these policies may include:
- Higher premiums
- Roof age eligibility limits
- Material restrictions
- Inspection requirements
- Wind and hail deductible adjustments
In Missouri and Arkansas, wind and hail deductibles can also significantly impact out-of-pocket costs during a claim.
Why Roof Age Matters in Storm-Prone Areas
Hail and wind storms are frequent in Missouri and Arkansas. As roofs age:
- Insurers may switch coverage to ACV
- Renewal terms may change
- Deductibles may increase
- Eligibility for replacement cost may expire
Understanding how your policy treats roof depreciation before a storm is critical.
How to Reduce Risk and Extend Roof Life
Proper roof maintenance can help preserve value and improve insurability. Regular inspections, clearing debris, and addressing minor repairs early can prevent larger claims.
For maintenance guidance, read our related article:
👉 How to Maintain Your Roof to Protect Home Insurance
https://www.millenniumbrokers.com/how-to-maintain-your-roof-to-protect-home-insurance/
Proactive maintenance can also support smoother claims handling.
Questions Homeowners Should Ask
If you’re unsure how your roof is covered, consider asking:
- Is my roof covered on an ACV or Replacement Cost basis?
- What is my wind and hail deductible?
- Are there age restrictions on my policy?
- Would an endorsement improve coverage?
- How would a claim payout be calculated today?
These answers can significantly impact your financial exposure.
Why Work With an Independent Insurance Agency?
An independent insurance agency can:
- Review your current roof coverage
- Compare ACV vs. Replacement Cost options
- Evaluate wind and hail deductibles
- Identify endorsement opportunities
- Help you understand claim scenarios
At Millennium Brokers, we help homeowners across Missouri and Arkansas understand how roof depreciation impacts their coverage so they can make informed decisions before the next storm.
Final Thoughts
Roof depreciation directly affects how much your insurance company will pay after storm damage. Without understanding whether your roof is insured for Actual Cash Value or Replacement Cost, you may face unexpected out-of-pocket expenses.
Reviewing your policy today can provide clarity, improve protection, and reduce surprises when severe weather strikes.