Storm Damage Resources
How to Read a Roof Insurance Estimate.
Your insurance company will produce a detailed estimate after the adjuster inspection. Most homeowners have no idea what they are looking at. Here is what every section means and what to watch for when something is missing.
Most roof insurance estimates are produced in Xactimate.
Xactimate is the industry-standard estimating software used by the majority of insurance companies and adjusters. When your estimate arrives it will look like an itemized invoice with line items, quantities, unit costs, and totals. It is more readable than it first appears once you know what you are looking at.
The key sections of a roof estimate.
01
Summary Page
The first page shows the total claim value broken into categories, typically roofing, gutters, and any additional structures. It shows the Replacement Cost Value (RCV), the depreciation withheld, and the Actual Cash Value (ACV) paid in the first check. This page tells you immediately what your policy type is and what the withheld amount will be returned as a second check when work is complete.
02
Line Items
Each line item represents a specific scope of work with a quantity, unit, unit cost, and total. Common roof line items include remove and replace shingles (measured in squares, one square equals 100 square feet), remove and replace underlayment, drip edge, ridge cap, flashing, and disposal. If a line item is missing that the damage warrants, this is where a supplement request starts.
03
Depreciation Schedule
Usually shown as a column alongside each line item or summarized on the first page. This shows how much was withheld from each category. Under RCV coverage this amount is returned when work is complete. Under ACV it is gone. High depreciation on a relatively young roof is worth questioning.
04
Overhead and Profit
Often written as O&P. This is the general contractor overhead and profit margin built into the estimate for jobs that require coordination across multiple trades or significant project management. Insurance companies sometimes exclude O&P on straight roofing jobs. If your project involves multiple trades, roofing, siding, and gutters together, O&P should be included. Its absence is a common supplement item.
05
Code Upgrade Line Items
Building codes change. If your area has adopted newer code requirements since your original roof was installed some upgrades may be required at replacement. Drip edge requirements, ice and water shield mandates, and deck inspection requirements vary by jurisdiction. These code upgrade items should appear as separate line items. Their absence is another common supplement opportunity.
What to look for when the estimate seems too low.
The most common reasons an insurance estimate comes in below full replacement cost are missing line items, outdated unit pricing, and scope limited to one section of a roof when full replacement is warranted. Missing gutters when gutters show soft metal hail damage. Missing drip edge or ice and water shield. Pricing that has not been updated to current market rates for labor and materials.
When we review an estimate with you we go through every line item against our own inspection documentation and current market pricing. Gaps become the basis for a supplement request.
The first estimate is not always the final word. We read them so you do not have to.
Related questions.
Have an estimate you want reviewed?
We go through them line by line. Free.
Call us with your estimate in hand. We will tell you whether the scope is complete and what to do if it is not.
(816) 866-4235 · Smithville, Missouri · Missouri Licensed and Insured