Understanding Your Roof Insurance Settlement Payment Schedule: A Guide for Homeowners

When a storm or other incident damages your roof, understanding how your homeowners insurance settles the claim is crucial. Unlike the more common Actual Cash Value (ACV) or Replacement Cost (RC) settlements, some insurance companies offer a Payment Schedule as a method to settle roof claims. This blog post aims to clarify what a Payment Schedule is and how it works, helping you navigate your claim with confidence.

What is a Payment Schedule in Roof Insurance Claims?

A Payment Schedule is a predetermined method used by some insurance companies to calculate the settlement amount for a damaged roof. This method is distinct from ACV and RC settlements. Instead of paying out based on the current market value of your roof (ACV) or the cost to replace it entirely (RC), the Payment Schedule uses a preset percentage based on the age of your roof at the time of damage. This approach aims to provide a fair and predictable settlement process for both the homeowner and the insurance company.

How Does the Payment Schedule Work?

The Payment Schedule operates on a sliding scale, where the settlement amount you’re eligible to receive for your roof damage decreases as the roof gets older. Here’s a simplified example of how it might work. This is an example and not an actual insurance company payment schedule scale.

  • Roof Age 0-5 years: 100% of the replacement cost
  • Roof Age 6-10 years: 80% of the replacement cost
  • Roof Age 11-15 years: 60% of the replacement cost
  • Roof Age 16-20 years: 40% of the replacement cost
  • Roof Age 21+ years: 20% of the replacement cost

These percentages and age brackets can vary significantly between insurance providers and policies. The critical aspect to understand is that the amount your insurer is willing to pay decreases as your roof ages.

The Process of a Payment Schedule Claim

  1. Damage Assessment: After reporting roof damage, an insurance adjuster will inspect your roof to assess the extent of the damage and determine the replacement value.
  2. Age Verification: The adjuster or insurance company will verify the age of your roof, often requiring documentation or proof of installation.
  3. Payment Calculation: The insurance company refers to their Payment Schedule, applying the appropriate percentage based on your roof’s age to the replacement value. This calculation determines the settlement amount. Example: If your roof replacement value is $20,000. It is determined that your roof is 6 years old. You receive 80% of the roof value or $16,000.
  4. Settlement: You receive the calculated amount from the insurance company minus your home insurance deductible to go towards the repair or replacement of your roof.

Advantages and Considerations


  • Predictability: Homeowners know in advance what percentage of a claim they might expect based on their roof’s age.
  • Fairness: This method aims to balance the insurance company’s risk with the homeowner’s need for coverage.


  • Lower Settlements for Older Roofs: Owners of older roofs may find the settlement amount under a Payment Schedule to be less than desirable compared to RC, particularly if the roof was nearing the end of its lifespan when damaged.
  • Policy Variations: Not all insurance companies offer a Payment Schedule option, and those that do can have significantly different schedules and percentages.

Maximizing Your Settlement

  • Maintenance Records: Keep detailed records of all maintenance and repairs, as these can affect the settlement process and your roof’s evaluated age.
  • Understand Your Policy: Review your insurance policy to understand which settlement method applies to you and how it’s calculated.
  • Professional Assessment: Consider hiring an independent roofing contractor to provide a second opinion on the damage and replacement cost.


While not as commonly used as ACV or RC settlements, understanding the Payment Schedule method is essential for homeowners navigating roof damage claims. By familiarizing yourself with your policy’s specifics and the age of your roof, you can better anticipate the settlement amount and make informed decisions regarding your claim. Always communicate openly with your insurance provider to ensure you fully understand your coverage and the claim process.

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