The shape of the document
Most residential property estimates are produced in the same handful of software packages, so they share a structure even when the styling differs. Expect three parts:
- The line items. Page after page of individual tasks — remove shingles, install underlayment, replace drip edge — each with a quantity, a unit price and a total.
- The summary. One page, usually near the front or the very back, carrying the four totals that matter.
- The depreciation schedule. Often a separate table showing age, expected life and the amount depreciated per item.
You can safely skim the line items on a first pass. Go to the summary.
The four numbers on the summary page
Replacement cost value (RCV)
The total cost to replace what was damaged, at today’s prices, with no deductions. It is normally the largest figure on the page and it is the one to enter first in the calculator. Sometimes labelled “Total RCV”, “Replacement cost” or simply the estimate subtotal.
Less depreciation
The amount held back for the age and wear of the roof. It may appear as a single figure or broken out per item. This is the number that turns a large estimate into a small cheque, and the crucial question is whether it is recoverable — see the guide on recoverable depreciation.
Actual cash value (ACV)
Replacement cost minus depreciation. This is what your roof was deemed to be worth on the day it was damaged. It is not yet what you receive.
Net claim
Actual cash value minus your deductible. This is the cheque. If the amount you received does not match this line, something has been applied that you have not been told about, and that is a fair question to put to your adjuster in writing.
Overhead and profit
Often shown as “O&P” or “General contractor overhead and profit”, usually as 10% and 10%. It covers the cost of a general contractor coordinating multiple trades.
Whether it is owed is one of the most commonly disputed items on a property claim. The usual test is trade count: where a job genuinely requires three or more trades to be coordinated, O&P is typically appropriate. A straightforward one-trade roof replacement is a weaker case. Practice and case law vary by state.
Check whether O&P appears on your summary at all. Its absence on a complex multi-trade job is worth raising.
Where the depreciation figure comes from
Adjusters apply an expected service life to each component and depreciate proportionally to its age. A twenty-year shingle at year twelve is roughly 60% depreciated.
Two things are worth checking. First, the age used — if the software assumed the roof was older than it is, the depreciation is overstated and a dated invoice from the previous replacement fixes it. Second, the service life assumed — architectural shingles typically carry a longer expected life than three-tab, and being placed in the wrong category costs you real money.
Why your contractor’s bid is higher
Almost always, and for legitimate reasons. The adjuster wrote the estimate from what could be seen from a ladder and a drone. Your contractor is quoting the job they will actually perform, including things nobody can see until the old roof comes off.
Common gaps: decking replacement, code-required ice-and-water shield, ventilation brought up to current code, and steep or high charges on difficult roofs.
The mechanism for closing this is a supplement — your contractor sends the itemised difference to the insurer for review. It is a routine part of roof claims, not a dispute, and the calculator generates the covering note for it.
Questions worth asking your adjuster
- Is the withheld depreciation recoverable or non-recoverable?
- What service life and roof age were used to calculate it?
- What is my deadline to complete the work and claim the depreciation?
- Was overhead and profit included, and if not, why not?
- Does my policy include ordinance-and-law coverage, and what is the limit?
Put them in one email rather than five phone calls. You want the answers in writing.
General guidance on standard residential property estimates. Terminology varies between estimating platforms and insurers. Not legal, claims or public adjusting advice.