A big storm just rolled through Omaha, and the sound of hail on your roof was unmistakable. You did the right thing: you called your insurance company, and an adjuster came out. Now, you have a check in your hand, but it’s not for the full amount your roofer quoted. What’s going on?
First, don’t panic. This is the single most confusing part of the roofing insurance process, and it’s where most homeowners get stressed out.
Here at Banana Roofing, we’re not just contractors; we’re your neighbors in La Vista, Papillion, and the greater Omaha area. We believe in a “hassle-free process” for our customers. A big part of that is helping you understand the confusing insurance paperwork.
Let’s clear up the two most important terms you’ll see: recoverable depreciation and non-recoverable depreciation.
What is Roof Depreciation in Plain English?
Before we get into the details, let’s define “depreciation.”
In the simplest terms, depreciation is just a word for wear and tear.
Think of it like a car. The moment you drive a new car off the lot, it loses some of its value. Your roof is the same. A 15-year-old roof, even if it’s in decent shape, isn’t worth the same as a brand-new roof that was just installed yesterday.
Insurance companies use depreciation to calculate what your roof was actually worth the moment before the storm damaged it. How they handle this depreciation amount is the key difference between the two main policy types.
Recoverable Depreciation: The Money You Get Back (RCV)
This is the “good” kind of policy. If you have Recoverable Depreciation, it means you have a Replacement Cost Value (RCV) policy.
An RCV policy is designed to cover the full cost of replacing your old, damaged roof with a brand new roof, using materials of similar kind and quality at today’s prices.
But here’s the part that confuses everyone: they don’t give you all the money at once.
The Two-Check Process
With an RCV policy, your insurance company “holds back” the depreciation amount to make sure you actually get the work done. You will get your money in two checks:
Check #1: The Actual Cash Value (ACV) This is the first check they send you (minus your deductible). It represents the value of your old, depreciated roof before it was damaged.
Check #2: The Recoverable Depreciation This is the “hold-back” money. After Banana Roofing (or your chosen contractor) completes the full roof replacement, we provide you with a final, itemized invoice. You send this invoice to your insurance company as proof of completion. They then “release” the depreciation amount they were holding and send you the second check.
The Simple Formula: Replacement Cost Value (RCV) = Actual Cash Value (ACV) + Recoverable Depreciation
This policy ensures you have the funds to “replace” what you lost and get your home back to its full value.
Non-Recoverable Depreciation: The Money You Don't Get Back (ACV)
This is the tougher situation. If your policy has Non-Recoverable Depreciation, it means you have an Actual Cash Value (ACV) policy.
An ACV-only policy does not pay to replace your roof with a new one. It only pays what your old, worn-out roof was worth at the exact moment the storm hit.
With this policy, the depreciation amount is non-recoverable. You will only get one check (minus your deductible), and that’s it. You will not get a second check after the work is done.
What This Means for You
If you have an ACV policy, you will be responsible for paying the difference between the ACV payment and the full cost of a new roof.
Example:
Full cost of a new roof: $20,000
Your roof’s depreciation (wear and tear): $8,000
Your deductible: $1,000
The insurance company will pay: $20,000 (Full Cost) – $8,000 (Depreciation) – $1,000 (Deductible) = $11,000
You will be responsible for: $9,000 (the $8,000 in depreciation + your $1,000 deductible)
These policies are less common, but they are sometimes used for much older roofs or as a way for homeowners to get a lower premium.
How Do I Know Which Policy I Have?
Don’t wait until after a storm hits. The best time to check is right now.
Pull out your homeowner’s insurance policy and look at the “Declarations Page.” On the section covering your home (often called “Dwelling” or “Coverage A”), look for the words “Replacement Cost Value” or “Actual Cash Value.” The letters RCV or ACV are often printed right there.
If you can’t find it, call your insurance agent and ask them one simple question: “Does my policy have Replacement Cost Value or Actual Cash Value coverage for my roof?”
How Banana Roofing Helps You Through the Claim
At Banana Roofing, we’re “Built for the People.” We’re not just here to nail shingles; we’re here to be your partner and protect what matters most. Dealing with insurance is a key part of that.
Here’s how our “hassle-free process” helps you, especially when depreciation is involved:
1. Honest Inspections: Our process always starts with a free, honest inspection. We get on your roof and meticulously document all storm damage (hail, wind, missing shingles) with photos and notes. This ensures your insurance adjuster has a full, accurate picture.
2. Clear, Detailed Estimates: We provide a detailed, line-item estimate (Step 2 in our process) that uses the same language and software that many insurance companies use. This makes it easy for an adjuster to see the true, local cost of a quality replacement.
3. Quality You Can Prove: We “Get to Work” (Step 3) using the “handpicked, long-lasting materials” needed to handle the “Midwest’s toughest weather.” When we’re done, the quality of our work is undeniable.
4. Getting Your Money: For RCV policies, the most important step is getting your recoverable depreciation. We provide the final, detailed invoice and certificate of completion immediately after our “Final Walkthrough” (Step 4). This is the key you need to unlock that second check from your insurance company, and we make sure you have it fast.
We treat your home like our own, and that includes helping you navigate the paperwork needed to protect it.
We're Here to Protect What Matters Most
Dealing with storm damage in Omaha, Gretna, or anywhere in our Nebraska service area is stressful enough. You shouldn’t have to be an insurance expert, too. That’s our job.
If you’ve experienced storm damage or just have questions about your roof’s condition, let us make it simple.
Book a Free Inspection with the Banana Roofing team today. We’ll treat your home like our own, from the first nail to the final inspection.
Frequently Asked Questions
Why did my insurance company hold back money?
They are holding back the “recoverable depreciation.” It’s their way of making sure you actually use the insurance money to repair the roof. Once you prove the work is done (with our final invoice), they will release the rest of the funds to you.
Do I have to use the roofer my insurance company recommends?
No. In Nebraska, you have the right to choose your own contractor. We always recommend choosing a trusted, local company (like us!) that is “rooted in hard work” and will be here for you long after the storm is gone.
What if my roofer's estimate is higher than the insurance adjuster's estimate?
This is very common and is called a “supplement.” Often, an adjuster may miss small items, code requirements, or not have the most current local material pricing. We work directly with your adjuster by providing our detailed estimate and photo evidence to ensure they have all the information to cover the full cost of the job.
My roofer said they can "eat" or "cover" my deductible. Is that okay?
No. This is insurance fraud. Your deductible is your share of the cost, as per your policy. Any roofer offering to “waive” it is acting unethically and is a major red flag. At Banana Roofing, we operate with “Honest Service” and “Integrity” from start to finish.
