Hail Repair Estimates in Plain English

You can’t take control of restored your home without understanding your estimates. But insurance claims can be tricky for industry outsiders to untangle. Here's how to read your insurance company's estimate.

The first part of the estimate states basic information: contact info, claim number, identification of damaged locations, and your adjustor's name.

The main part of the estimate will describe the labor, materials, and any other costs associated with your claim. (It’s often a line-item list.) Below is a sample of the way your provider might categorize an estimate.

  • Description, Quantity, Unit Cost: Each line of your insurance company’s estimate will describe the kind of work that needs to be done, how much work, and the price per unit of work.
  • Tax: Sales tax on materials
  • Replacement Cost Value (RCV): The RCV is the total estimated cost. It’s essentially the value of the new or restored roof.
  • Depreciation: Unless your roof was brand spanking new when the hail hit, it probably has some wear and tear. The Depreciation is the total amount of deductions taken for the roofs age and other factors that lower its value. (Think of used cars. New cars lose value as you drive them, which is why used cars are cheaper. The Depreciation is the value your car—or roof—has lost with age.)
  • Actual Cash Value (ACV): The ACV is what your “used” roof is worth today.

The last part of your estimate will contain a separate total for each damaged location and summary of the total coverage. These usually include:

  • Materials Sales Tax: The total for sales tax on all materials
  • Line Item Total (or Subtotal): The total for labor and materials
  • Replacement Cost Value (RCV) = Materials Sales Tax + Line Item Total
  • Deductible: The amount you owe out of pocket according to your insurance policy
  • Net Claim: The amount your insurance company will pay for your roof damage claim. Usually, the Net Claim is the RCV minus your Deductible. But double-check your policy because some policies only cover the ACV (from above) minus your Deductible.

Hail Hero can handle all of this for you. Our home restoration experts will make sure your claim is fully optimized. Find out more about our hail restoration concierge service.

Nathan Lucy

XWORX, 3504 Wyoming St., St. Louis, MO 63118

I love using service design, strategy, and storytelling to help businesses attract more of their most enjoyable, profitable customers. I teach Design Thinking at Washington University in St. Louis and serve on the board of the St. Louis chapter of the Service Design Network. My approach to business, informed by human-centered design and organizational development, is all about re-connecting people.