Insurance estimates after a Texas hailstorm look intimidating on purpose. Dense line items, acronyms, depreciation columns, and a bottom-line check that's almost always lower than the actual cost to rebuild your roof. Most homeowners glance at the payable amount and either accept it or panic. Neither is correct.
Here's how to read every line of a typical insurance scope of loss — in plain English — and where carriers most often underpay. By the end you'll know what your contractor should be supplementing on your behalf.
The two numbers that matter most: ACV vs RCV
Your policy is almost certainly a Replacement Cost Value (RCV) policy or an Actual Cash Value (ACV) policy. The difference controls everything downstream.
- RCV pays the full cost to replace your roof with materials of like kind and quality, minus your deductible. The carrier sends the ACV portion first, then the depreciation "recoverable" amount once the work is complete and invoiced.
- ACV pays only the depreciated value of the roof. A 15-year-old roof on a 25-year shingle is paid at roughly 40% of replacement cost. The homeowner covers the rest.
Check your declarations page for the term "Replacement Cost" under Coverage A (Dwelling). If you see "Actual Cash Value" or "ACV Roof Endorsement," the carrier has limited your roof to depreciated payout — and that's a policy conversation to have with your agent before the next storm.
Depreciation, recoverable vs non-recoverable
On an RCV policy, depreciation is held back at first payment and released when the work is completed. The first check ("ACV payment") plus the depreciation release plus your deductible should equal the total claim minus any non-recoverable holdback.
Non-recoverable depreciation is the carrier's permanent deduction — typically applied to cosmetic-only items or to certain accessory components. Flag any unusually high non-recoverable line: it's worth a question.
Overhead & Profit (O&P) — the line carriers love to skip
Texas case law and standard industry practice say that any claim involving three or more trades (roofing, framing, drywall, paint, gutter, etc.) qualifies for a 10% overhead and 10% profit line — the "10 and 10" your contractor will reference.
Carriers often omit O&P from the initial scope. If your job involves roofing plus interior repair, gutter replacement, or any wall/window collateral, your contractor should supplement for it. This single line item is frequently 15–20% of the total claim.
Code upgrades — required, not optional
Texas building code and most North Texas municipalities require specific upgrades when a roof is replaced — drip edge metal on all eaves and rakes, ice and water shield on certain assemblies, synthetic underlayment, properly sized ridge ventilation, and so on.
Most policies include an "Ordinance or Law" endorsement that pays for these upgrades. The carrier rarely includes them in the initial estimate unless prompted. Your contractor should itemize each required code upgrade against your endorsement language.
Common underpaid line items to check
- Detach and reset for satellite dishes, lightning rods, solar attic fans, gutter guards.
- Steep & high charges for any roof above 6/12 pitch or two stories. Underpaid constantly.
- Pipe jacks, B-vents, turbines — these should be itemized, not bundled.
- Ridge ventilation upgrade per linear foot if the original was inadequate.
- Drip edge in eave and rake configurations, in linear feet, plus color match.
- Starter strip at eaves and rakes — frequently omitted from initial scopes.
- Permit fees for your municipality.
- Dump and haul — often understated relative to actual tear-off square footage.
- Painted exterior collateral for any window wraps, fascia, garage door panels.
Sales tax — small line, real money
Texas applies sales tax to materials. On a typical residential reroof, that's $400–$900 the carrier should be paying. Make sure it appears as a discrete line, calculated against the material total, not just bundled into an itemized price.
The deductible: yours to pay, by law
Texas law prohibits contractors from waiving, absorbing, or rebating an insurance deductible — and prohibits homeowners from accepting it. Any contractor offering to "eat your deductible" is asking you to participate in insurance fraud and putting your claim at risk of denial.
A reputable contractor will collect the deductible like any other payment, document it on the final invoice, and use that documentation to release your depreciation. We follow this process on every claim — see our insurance claims page.
What to do once you've read the estimate
- Forward the full PDF to your contractor before signing anything.
- Ask for a written supplement covering missing line items.
- Confirm the carrier accepts the supplement before tear-off begins.
- Pay the deductible at the time agreed in your contract.
- Send the final invoice to the carrier to release depreciation.
Need someone to read your estimate with you? DKG Roofing is veteran-owned, based in Aledo, TX, serving North Texas, and we review insurance scopes for North Texas homeowners every day. Send us your estimate and we'll tell you what's missing — at no cost.
Emergency tarping and next steps
If your roof is leaking right now or you just spotted hail damage from the ground, do not wait on the insurance call to act. Our storm damage response page walks through the full North Texas emergency response — free same-day inspection, emergency tarping to stop active leaks, written damage documentation for your adjuster, and the insurance claim handled end to end.
DKG Roofing is veteran-owned and based in Aledo, TX, serving North Texas. Call (940) 497-2833 for emergency tarping, or request a free inspection online and an estimator will reach out the same day.
Frequently asked questions
What does ACV mean on my insurance roof estimate?
ACV stands for Actual Cash Value, which is the depreciated value of your roof at the moment of the storm. On a Replacement Cost Value (RCV) policy, your first insurance check is the ACV amount. The rest, called recoverable depreciation, is released after your roofing contractor completes the work and sends the final invoice. The total of ACV plus depreciation plus your deductible should equal the full approved claim.
Why is my insurance check so much smaller than the total claim amount?
Your first insurance check is smaller because two amounts are held back: your deductible (which you pay) and recoverable depreciation (which is released after the roof is built). This is normal on an RCV policy. To get the depreciation released, your contractor sends the carrier a final invoice once the work is complete. If you have an ACV-only policy, the smaller check is all you receive.
Can my roofing contractor add line items to the insurance estimate?
Yes. The process is called supplementing and it is a normal part of every insurance claim. Your contractor submits the additional line items — code upgrades, soft metals, steep-charge fees, overhead and profit — with photos and documentation. The insurance company reviews and issues a revised scope of loss. We file supplements for our customers as standard practice and most are approved within a week or two.
What if my hail and wind deductible is bigger than I expected?
Many Texas homeowner policies use a separate wind and hail deductible that is a percentage of your dwelling coverage — usually one or two percent — instead of a flat dollar amount. On a $400,000 home that can be $4,000 to $8,000. Check your declarations page under 'wind/hail deductible' to see exactly what you owe. If it is a surprise, raise it with your insurance agent at next renewal.
Does DKG review insurance roof estimates for free?
Yes. Send us your scope of loss (the PDF the adjuster emails you) and we will review every line at no charge, identify what is missing — code upgrades, soft metals, sales tax, overhead and profit — and tell you whether a supplement is warranted. There is no obligation to hire us for the work. We do this every day for North Texas homeowners as part of our storm response.