Insurance Coverage Gap Visualizer

What the Coverage Gap Actually Is

On any roof claim, the number your insurance company pays and the number the contractor charges are almost never the same. The difference — what comes out of your pocket — is the coverage gap. It is not random. It is the predictable result of two specific policy mechanics: your deductible and depreciation.

The deductible is the amount you pay first, before insurance touches the rest. On most Gulf Coast policies, hurricane or named-storm events trigger a separate, percentage-based deductible calculated against your dwelling coverage — not the repair cost. A 2% deductible on a $350,000 home means $7,000 out of pocket before insurance pays anything, whether the damage is $8,000 or $80,000.

Depreciation is the reduction in value your carrier applies based on your roof's age and wear. On an ACV (Actual Cash Value) policy, this deduction is permanent — you never get it back. On an RCV (Replacement Cost Value) policy, depreciation is withheld from the initial payment but recoverable once repairs are complete and documented. The RCV-vs-ACV difference on a 15-year-old roof with $20,000 of damage can easily be $6,000 to $8,000 in your pocket.

This visualizer makes that math concrete and specific to your scenario. The "Insurance Pays $0" result is not a bug — it is what happens when your deductible exceeds your roof's depreciated value, which is common on ACV policies with older roofs and percentage deductibles. Knowing this before a storm is the point.

What to Do With Your Results

If your gap is small (under $3,000) and you have RCV coverage, your main action is confirming you understand the depreciation recovery process. After repairs are complete, submit the final invoice to your carrier and request release of the withheld depreciation — it does not happen automatically. Your contractor can usually handle this paperwork, but it is your responsibility to follow up if they do not.

If your gap is large (over $5,000) on an RCV policy, the visualizer is showing you the worst-case scenario before depreciation recovery. Your actual out-of-pocket after recovering depreciation is just your deductible. Run the scenario with the recoverable depreciation in mind before deciding the claim is not worth filing.

If insurance pays $0 or a very small amount, this usually means your deductible exceeds the ACV of your roof. This is the most common scenario for homeowners who have ACV coverage on a roof over 15 years old with a percentage hurricane deductible. There is nothing wrong with the tool — this is the math. The practical question is whether to switch to RCV coverage (higher premium, better protection on older roofs) or replace the roof before the next storm season.

If the gap is driving your replacement decision, compare the visualizer result against the cost of a FORTIFIED-certified roof replacement. In Alabama, the Strengthen Alabama Homes grant offsets up to $10,000 of that cost, and FORTIFIED designation typically reduces future premiums by 20–50% — which changes the long-term math considerably. The FORTIFIED ROI Calculator on this site can run that analysis.

Related Resources

• RCV vs ACV Explained — how the coverage type you chose determines whether depreciation is recoverable
• Hurricane Deductibles Explained — how percentage deductibles work on Gulf Coast homes
• How to Collect Recoverable Depreciation — the steps to claim the money your carrier withholds
• FORTIFIED ROI Calculator — if the gap is prompting a replacement, this shows the long-term premium math
• How Roof Age Affects Insurance — why the gap gets worse as roofs age, and at which thresholds to act