Roof Insurance Coverage Basics

Quick Answer

Most Colorado homeowners policies cover the roof under a 'dwelling' coverage on either an actual cash value (ACV) or replacement cost value (RCV) basis, subject to the policy’s perils and exclusions, the deductible, and any roof-specific endorsements. The exact coverage details vary significantly by carrier, policy form, and endorsement — the same address with two different carriers can have very different coverage outcomes on the same storm. Read your policy and ask your agent for written confirmation of the specifics before assuming anything.

Named Perils vs All-Risk Policies

Two policy structures dominate the Colorado homeowners market. Most homes are written on an HO-3 (open perils on dwelling, named perils on personal property), but newer policies and some renewals use a more restricted form.

• HO-3 (open perils on dwelling) — covers any cause of loss except those specifically excluded; common in Colorado on owner-occupied homes
• HO-5 (open perils on dwelling and personal property) — broadest standard form, more expensive
• HO-1 / HO-2 / restricted forms — only the perils specifically named are covered; common on rentals or newer-construction policies
• Wind/hail can be excluded entirely on some policies in extreme hail markets — confirm with your agent

ACV vs RCV (and Why It Matters)

Most Colorado replacement-cost policies pay actual cash value (ACV) of the damaged roof up front — RCV minus depreciation — then release the recoverable depreciation after the work is completed and final invoices are submitted. The deductible is typically taken from the first ACV check. Some policies (often older policies, older roofs, or specifically endorsed roof-actual-cash-value endorsements) only ever pay ACV regardless of whether the roof is replaced, which can leave the homeowner paying tens of thousands out of pocket on a covered loss.

• Replacement Cost Value (RCV) — cost to replace with similar materials at today’s prices, no depreciation
• Actual Cash Value (ACV) — RCV minus depreciation for age and wear
• Recoverable depreciation — the difference, paid after work is done and invoices submitted
• Roof ACV-only endorsement — a separate endorsement that limits roof coverage to ACV regardless of policy form; common on older or hail-history homes

Depreciation and Roof Age

Carriers depreciate roofs based on roof age, expected useful life of the shingle, and condition observed by the adjuster. Most Colorado adjusters use a 25-year useful-life schedule for standard asphalt and depreciate roughly 4% per year. A 10-year-old roof is typically depreciated 30–40% off RCV. The exact depreciation calculation belongs to the carrier; AC INC Roofing documents the roof condition in our inspection report and provides the Xactimate scope, but we do not calculate depreciation.

Code-Upgrade (Ordinance or Law) Endorsements

Many Colorado roofs require code upgrades on a permitted replacement — ice-and-water shield, drip edge, valley metal, ventilation, or Class 4 shingles in jurisdictions that mandate them. Standard policies often do NOT cover code upgrades. An Ordinance or Law (or Building Code Upgrade) endorsement may pay the additional cost; the coverage limit, trigger conditions, and percentage caps vary by carrier and endorsement. Ask your agent in writing whether your policy includes code-upgrade coverage and how much.

Questions to Ask Your Carrier or Agent in Writing

Before any storm hits is the best time to clarify what your policy actually covers. Get the answers in writing (email is fine) so they are part of your insurance file.

• Is my roof covered on an RCV or ACV basis?
• What is my Wind/Hail (W/H) deductible in dollars?
• Do I have a Roof ACV-Only endorsement?
• Do I have an Ordinance or Law (Building Code Upgrade) endorsement, and what is the coverage limit?
• How does the carrier calculate depreciation on a roof of my age and material?
• Are there any cosmetic-damage exclusions on roof or other building components?
• What is the deadline for filing a wind / hail claim under my policy?

Frequently Asked Questions

Can AC INC Roofing tell me what my policy covers?

No. We are a licensed roofing contractor, not a licensed insurance agent or public adjuster. Your insurance agent and your policy declarations page are the authoritative source for what is covered. We can explain what we observe on your roof, document storm damage, and provide a Xactimate-compatible scope; the coverage interpretation belongs to your carrier.

What does "recoverable depreciation" mean?

Recoverable depreciation is the difference between RCV and ACV that the carrier holds back from the initial claim payment and releases after the work is completed and final invoices are submitted. It is essentially a 'completion incentive' built into the policy — you only get the full RCV if you actually do the work. AC INC Roofing provides the documentation needed to release recoverable depreciation on every project.

My adjuster wrote a scope I disagree with. What now?

Document the disagreement. A second HAAG Certified inspection, additional photos, code-citation documentation, and a written rebuttal can be shared with the carrier. If the dispute is about coverage, scope dollar amounts, depreciation, or anything beyond documentation, that is licensed-professional territory — talk to a licensed Colorado public adjuster or insurance attorney before invoking appraisal or filing a complaint.

What is the difference between supplemental and original scope?

The original scope is the carrier’s initial scope of loss after the first adjuster inspection. A supplement is additional scope discovered later — hidden decking damage, code-upgrade items the original adjuster missed, code requirements identified at permit, or rebuilding components not in the original scope. AC INC Roofing documents conditions that may justify a supplement; the homeowner or their licensed representative submits the supplement to the carrier.

Why won't AC INC Roofing tell me how much the carrier 'should' pay?

Because that is not legally our role. Coverage and dollar amounts are determined by the homeowner’s policy and their insurance carrier. As a licensed roofing contractor, we are not licensed to estimate, appraise, or negotiate insurance losses on a homeowner’s behalf. We can document damage and provide pricing for the work; coverage questions belong to your carrier or a licensed Colorado public adjuster.