Depreciated value

Depreciated value is the current market worth of an item, calculated by its replacement cost minus the “wear and tear” it has sustained over time. Many carriers are using “depreciated value” (Actual Cash Value) for roof settlements to combat high claims costs. For a homeowner, this means if a 15-year-old roof is destroyed, the payout will be significantly less than the cost of a new roof, as the insurer subtracts the “value” you already used up over the last decade.