RCV, ACV, depreciation, and what to never sign. The homeowner's primer.
The basic Illinois policy structure
Almost every homeowner policy in Evanston is an HO-3 written on Replacement Cost Value (RCV) with a percentage deductible (typically 1–2% of dwelling coverage; on a $600,000 home that is $6,000–$12,000) and recoverable depreciation.
What "recoverable depreciation" means
The insurer pays the Actual Cash Value (ACV) — replacement cost minus depreciation based on the age of the roof — at the start. Once you complete the work and submit the final invoice, the depreciation portion is released. So a $20,000 roof on a 15-year-old shingle might pay out as $12,000 ACV up front, then $6,500 in recoverable depreciation once complete, minus your $1,500 deductible. Net out-of-pocket: $1,500.
The deductible is yours to pay
Always. Anyone who tells you otherwise is asking you to commit insurance fraud (215 ILCS 5/155.36). Walk away.
What to never sign
Assignment of Benefits (AOB): transfers your claim rights to the contractor. Don't.
A blank contract or one with "TBD" pricing: the price has to be in the contract before you sign.
A contract before the adjuster has set the scope of loss: you do not know what you are agreeing to pay yet.
What to definitely do
Get inspections from two reputable local contractors before you file. Save the NOAA storm data. Meet the adjuster on the roof with your contractor present. Read the final scope of loss line by line. Ask for a supplement (in writing) if anything is missing — chimneys, decking allowance, ice-and-water shield, drip edge, ridge cap accents.
When to bring in a public adjuster
For residential claims under $30,000 on a straightforward shingle roof, an experienced local contractor is usually enough. For complex claims (slate, tile, large commercial), losses over $50,000, or any claim where the carrier is being unreasonable, a public adjuster's 10–15% fee is often worth it.