After a hailstorm rolls through Garland or anywhere across the DFW metro, most homeowners get an insurance estimate in the mail that reads like a foreign language. RCV. ACV. Depreciation withheld
Line items for drip edge, underlayment, and something called O&P. Most people either accept whatever number is on the page or set the document aside and hope their contractor handles it.
Neither approach puts you in a good position. Understanding what your estimate actually says takes about 10 minutes and can save you from leaving real money on the table.
The Two Numbers That Matter Most — RCV and ACV
Every roof insurance estimate in Texas will show two key figures, and the difference between them is where most of the confusion starts.
RCV stands for Replacement Cost Value. This is what it actually costs to replace your roof with new materials at current market prices. Your roofing contractor works from this number when they scope the job.
ACV stands for Actual Cash Value. This is what the insurance company pays you upfront, before the work is completed. ACV is calculated by taking your RCV and subtracting depreciation.
The gap between those two figures is called withheld depreciation, and most homeowners with standard replacement-cost policies will recover that amount after the work is done and they submit the final invoice to the carrier.
The one exception worth knowing about: some policies are ACV-only. That means the carrier never releases the depreciation regardless of whether the work gets done. If you are unsure which type of policy you have, pull it out and look for language about recoverable or non-recoverable depreciation before you file.
What Depreciation Actually Means on a Roof Claim
Depreciation is not just a penalty for having an older roof. Adjusters factor in the roof’s age, the current condition of the materials, the type of shingles installed, and sometimes even the pitch of the roof.
A 10-year-old shingle roof in Garland gets depreciated more aggressively than one in a milder climate. That is because Texas UV exposure and recurring hail seasons wear shingles down faster than they would elsewhere in the country. The adjuster’s depreciation calculation reflects that wear.
Where homeowners get tripped up is treating depreciation as money taken away permanently. Under a standard replacement-cost policy, depreciation is deferred, not gone. Once the project is complete and you submit the final invoice, the carrier releases it. That second payment is called the recoverable depreciation check, and it is the piece homeowners most often forget to request.
Breaking Down the Line Items
The body of your estimate will be a list of line items, each covering a specific part of the scope. Here is what the most common ones actually mean.
Remove and Dispose covers the labor cost to tear off your existing roof. This is priced per square, with one square equal to 100 square feet. Check that the square count in this line item matches the actual size of your roof. Errors here affect every other number on the estimate.
Shingles will be listed by square, material grade, and unit cost. If your existing roof has architectural shingles and the adjuster scoped 3-tab, that is a scope error that needs to be corrected before you sign anything.
Underlayment is the protective layer installed directly over your decking before the shingles go on. This should always be a line item. If it is missing, flag it.
Drip Edge and Flashing are the metal components installed along your roof edges and around penetrations like pipes and chimneys. These are frequently missed or underpriced in initial estimates, particularly after hail events, when adjusters are moving quickly through many properties.
Ridge Cap covers the shingles installed at the peak of your roof. It is a separate material from field shingles and should be a separate line item. Estimates that bundle it in or leave it out entirely are not scoping the job correctly.
Overhead and Profit, usually listed as O&P, is a standard markup of 10 percent overhead and 10 percent profit that general contractors are entitled to on restoration projects. Adjusters do not always include it on the initial estimate. This is one of the most commonly disputed line items in Texas, and one of the most legitimate. If your contractor is coordinating a full restoration, O&P should be included in the estimate. The National Roofing Contractors Association recognizes O&P as a standard component of restoration project estimates, and most experienced Texas contractors will request it if the adjuster omits it.
What Adjusters Get Wrong Most Often in North Texas
Adjusters are not always wrong, but they often work quickly and cover a lot of ground after a major storm. That creates predictable gaps.
Hail damage in the DFW area is routinely underscoped because the bruising and granule displacement from hail impact are not visible from the ground. They require someone on the roof who knows what to look for. Adjusters who complete a drive-by or a quick ground assessment miss things that a trained eye catches from the ridge.
Partial replacement scopes are another common issue. An adjuster may write up one slope when the damage pattern across the entire roof justifies a full replacement. This happens most often after widespread storm events when carriers are managing a high volume of claims.
Missing line items for flashing, drip edge, and ridge cap are common in initial estimates. So does the absence of O&P. None of these are aggressive requests when a contractor adds them back in. They are corrections to an incomplete scope.
Not sure if your estimate covers everything, it should? Texas Roofing Project reviews insurance estimates for North Texas homeowners at no charge. Schedule a free inspection and estimate review here.
The Supplement Process
A supplement is a formal written request to the insurance company asking them to add or correct line items on your estimate. Supplements are a standard part of the claims process and are used regularly by contractors and carriers alike. They are how scope errors get fixed.
If your contractor identifies missing items, they can document them with photos and measurements and submit a supplement directly to the carrier. You do not have to fight that battle on your own. A contractor who has handled insurance work in Texas will know how to write a supplement that gets reviewed seriously.
Texas homeowners also have the right to formally dispute a claim through the appraisal process. The Texas Department of Insurance outlines your rights under state law, and your policy will have specific language about how to invoke the appraisal clause if you and the carrier cannot reach an agreement on scope or value. Before accepting a settlement that does not cover the full scope of damage, it is worth understanding what options you actually have.
Keep Everything in One Folder
After a claim is settled and the work is done, hold on to every document related to that project. That means the original estimate, every supplement, the adjuster’s photo file, the contractor’s final invoice, the warranty paperwork, and any written communication with the carrier.
If a leak develops two years later in an area that was included in the original claim, that documentation is how you establish whether you are dealing with a new event or a defect in the restoration work. Texas storm seasons are consistent and recurring. A homeowner who understands their estimate and keeps a complete project file today is in a significantly better position the next time a major storm moves through Garland, Rowlett, or anywhere else across North Texas.
Texas Roofing Project helps homeowners in Garland, Plano, Richardson, Rowlett, and Wylie navigate roof insurance claims from inspection through final restoration. If you received an estimate and are not sure the scope is right, reach out here, and we will review it with you at no cost.
