Claims help
The check came in low. Here's what's really going on.
Underpaid is different from denied. The carrier accepted the claim — they just paid less than the damage. There are five common reasons, and four of them are negotiable.
Before you panic — request the loss settlement worksheet. Half of "underpayments" are actually recoverable depreciation sitting in escrow waiting for you to finish repairs.
5 reasons your insurance check is low
- 1
Recoverable depreciation withheld
On an RCV policy, the first check is the actual cash value (ACV) — replacement cost minus depreciation. The depreciation portion is held back until you complete the repair and submit invoices. People who don't realize this think they've been underpaid by 30–60%, when really half the money is sitting in escrow at the carrier waiting for proof of completion.
- 2
Matching denied
When only part of your roof, siding, or flooring is damaged, carriers often refuse to pay for the undamaged sections — even when nothing on the market matches the original material. About 20 states have matching laws or regulatory bulletins that force carriers to pay for reasonable matching. If you're in one and the carrier won't match, that's the dispute lever.
- 3
Condition-based depreciation
Beyond age depreciation, adjusters sometimes apply extra depreciation for 'condition' — granule loss, prior wear, deferred maintenance, or alleged pre-existing damage. This is the most disputed category. A second opinion from a licensed roofer or contractor that documents pre-loss condition usually reverses it.
- 4
Scope disputes
The adjuster's scope (what's included in the estimate) is often narrower than reality. Missing line items: code-required upgrades, debris removal, permit fees, dumpster fees, ridge vents, drip edge, ice-and-water shield, code-required underlayment, overhead and profit (O&P) on large losses. Each missing line item is 1–8% off the check.
- 5
Deductible math you didn't expect
If you live in a hail-belt or coastal state, your wind/hail deductible is probably a percentage of dwelling coverage (1–5%), not a flat $1,000. A $400k house with a 2% hail deductible = $8,000 out of pocket before the carrier pays a dollar. This isn't underpayment — it's policy language most homeowners didn't realize they bought.
How to read the loss settlement worksheet
The worksheet (sometimes called "scope of loss" or "estimate summary") shows every line the adjuster paid for and how much they depreciated. Look for:
- • RCV vs ACV columns — the gap is your recoverable depreciation
- • Depreciation % per line — anything above standard age-based % is condition-based and disputable
- • Missing line items — code upgrades, debris removal, permits, ice-and-water shield, drip edge, O&P
- • Unit prices — compare against Xactimate or a local contractor estimate
- • Deductible line — flat $ or % of Coverage A? On a hail/wind loss it's often a percentage
How to dispute a low offer
- 1. Get an independent estimate — from a licensed roofer, contractor, or restoration company. Should be on letterhead with line-item pricing.
- 2. Write a line-by-line rebuttal — cite the missing items and the unit-price differences. Reference your policy's loss settlement language.
- 3. Request a re-inspection — most carriers will send a different adjuster if you push.
- 4. Invoke appraisal — most policies have an appraisal clause: each side picks an appraiser, they pick an umpire, and a 2-of-3 decision binds the carrier. Effective for scope/price disputes, doesn't apply to coverage disputes.
- 5. File a DOI complaint — free, tracked, and carriers respond fast because regulators are watching.
- 6. Public adjuster or attorney — for disputes over $10k, contingency-based help usually nets more than it costs.
Don't get blindsided next time
Upload your declarations page and we'll flag the language that turns into lowball settlements — ACV roof endorsements, percentage deductibles, matching exclusions, missing code/ordinance coverage — before you need to file a claim.
Review my policyFrequently asked
Why is my insurance claim check so low?
Most underpayments come from one of five places: withheld recoverable depreciation (the carrier is holding it until you finish repairs), matching denied (they paid for damaged material only), condition-based depreciation (extra deduction for wear), missing line items in the adjuster's scope, or a percentage deductible you didn't realize applied. Read the loss settlement worksheet line-by-line before assuming the carrier is wrong.
What do I do if my insurance settlement is too low?
Get the carrier's full estimate (the 'loss settlement statement' or 'scope of loss'), get an independent estimate from a licensed contractor for comparison, and identify the specific line items or unit prices that differ. Submit a written dispute citing the missing items, attach the contractor estimate, and request a re-inspection. For disputes over ~$10k, a public adjuster (10–20% contingency) or policyholder attorney usually nets you more than they cost.
What is recoverable depreciation and why wasn't it paid?
On an RCV policy, depreciation is the dollar amount the carrier holds back from the first check until you actually replace the damaged item. Submit signed contractor invoices, paid receipts, and proof of completion. Most carriers release the depreciation check within 2–4 weeks. You typically have 180 days to 2 years from the date of loss — check your policy. If they refuse after you've submitted proof, escalate to your state's department of insurance.
My insurance won't pay to match my undamaged siding/roof/floor — is that legal?
It depends on your state. About 20 states have matching laws or bulletins that require carriers to pay for reasonable matching of undamaged sections when a partial replacement would look mismatched. Common matching states include CA, CT, FL, GA, IA, IL, KY, MD, MN, MO, NE, ND, OH, OK, SC, VT. If your state has a matching rule and the carrier denies it, file a complaint with the department of insurance — these are won frequently.
How is depreciation calculated on an insurance claim?
Most carriers use straight-line depreciation: useful life of the item divided by its current age. Asphalt shingle roofs are typically depreciated over 20 years (5%/year), HVAC over 15–20 years, carpet over 8–10 years, water heaters over 10–12 years. A 10-year-old asphalt roof is roughly 50% depreciated. Condition adjustments can add more on top — but those are negotiable.
Is the insurance payout the total claim or after the deductible?
After the deductible. The check is: covered loss − depreciation (held until repair) − deductible. On a $20,000 roof with $4,000 depreciation and a $2,000 deductible, the first check is $14,000. Once you replace the roof, you recover the $4,000 depreciation — netting $18,000 against a $20,000 loss.
Should I hire a public adjuster for a lowball settlement?
For disputes over ~$10,000 of disputed scope, usually yes. Public adjusters work on contingency (10–20% of the additional recovery), so they only get paid if they get you more. For smaller disputes, do it yourself: get a contractor estimate, write a line-by-line rebuttal, request re-inspection. For systematic bad faith (carrier ignoring evidence, missing deadlines), talk to a policyholder attorney — most offer free consults and work on contingency.