Claim paperwork
Loss settlement worksheet, explained.
The loss settlement worksheet is the one page that shows exactly how your payout was calculated. Every deduction, every line item, every dollar held back. If you only read one document the insurance company sends you, this is it — and here's how to decode every line.
A typical worksheet, line by line
Real example for a hail roof claim. Yours may have different category names but the math is the same.
| Replacement Cost Value (RCV) | $24,500.00 |
| Less: Recoverable Depreciation | −$8,200.00 |
| Less: Non-Recoverable Depreciation | −$0.00 |
| Actual Cash Value (ACV) | $16,300.00 |
| Less: Deductible | −$2,500.00 |
| Net Claim Payment (1st check) | $13,800.00 |
| Available recoverable depreciation (2nd check, after completion) | $8,200.00 |
Every line, decoded
Replacement Cost Value (RCV)
The total cost to fix the damage today, brand new. Built from the adjuster's itemized estimate (often in Xactimate or Symbility). If this number looks low compared to a contractor bid, the unit costs or scope are usually the reason.
Recoverable depreciation
Money the carrier withholds for age-based wear that you can claim back as a second check once you finish the work and send proof. Most carriers have a 180-day to 2-year recovery window.
Non-recoverable depreciation
Depreciation that's gone for good. Usually shows up when you have an ACV-only roof endorsement, a roof payment schedule by age, or condition-based deductions for prior wear. If this line is non-zero, dig into the policy endorsement that triggered it.
Actual Cash Value (ACV)
RCV minus all depreciation. This is what the carrier values the damaged property at right now, before your deductible. Full breakdown on What is ACV?
Deductible
Your out-of-pocket share. Flat dollar for most perils; a percentage of dwelling for wind, hail, hurricane, and named storms — which means thousands more on percentage policies.
Net claim payment
The first check the carrier issues. On an RCV policy this is typically the smaller check; the recoverable depreciation arrives later as a second check.
What's missing more often than not
These should appear on the worksheet (or on the itemized estimate that backs it). If they don't, they're each grounds for a written supplement request:
- Overhead & Profit (10% + 10%) — when three or more trades are involved
- Sales tax on materials (varies by state)
- Permit fees ($200-$800 typical)
- Dump fees / debris removal
- Code-upgrade items if you have Ordinance & Law coverage
- Roofing components: drip edge, starter course, ice & water shield, ridge cap
Frequently asked
What is a loss settlement worksheet?
A one-page document an insurance adjuster sends with your claim that shows the math behind your payout: replacement cost (RCV), depreciation, actual cash value (ACV), deductible, and the net check amount. Some carriers call it a 'claim summary,' 'settlement statement,' or 'payment worksheet.'
What lines should be on a loss settlement worksheet?
At minimum: total RCV (replacement cost), depreciation broken out (often by category — age vs condition), ACV total, your deductible, and the net check amount. A good worksheet also lists recoverable vs non-recoverable depreciation separately and includes O&P, sales tax, permit fees, and code-upgrade items.
Why does my worksheet show two different depreciation numbers?
Most carriers split depreciation into two buckets: recoverable (released after you complete the work) and non-recoverable (permanently subtracted). Non-recoverable depreciation usually comes from age-cap endorsements, cosmetic damage exclusions, or condition-based deductions for prior wear.
What's missing from my loss settlement worksheet?
Common omissions to check for: O&P (10% overhead + 10% profit), sales tax on materials, permit fees, dump fees, code-upgrade items (if you have Ordinance or Law coverage), and roofing components like drip edge, starter course, and ice & water shield. Each missing item is grounds for a written supplement request.
Can I dispute the loss settlement worksheet?
Yes. Submit a written supplement request to your adjuster listing the specific lines you're disputing — missing items, undervalued unit costs, or improperly applied depreciation. Attach a contractor's itemized bid for comparison. Most carriers revise within 1-2 weeks. If they refuse, escalate to a manager or file a DOI complaint.
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Keep reading
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Read moreAfter a claimInsurance Claim Denied?
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Read moreAfter a claimUnderpaid Insurance Claim?
What to do when the payout is way less than the damage.
Read moreGeneral information, not legal or financial advice. Worksheet formats vary by carrier and state.