Scheduled Roof Payment
and Recoverable Depreciation,
Explained

Three Ways a Policy Can Settle a Wind or Hail Roof Loss

Roofs are often treated differently from the rest of the house. The Illinois Department of Insurance's claims guide says so directly: even with replacement cost coverage there may be other limits on what a policy pays for surfaces such as roofs, and in some cases the policy pays actual cash value on the roof and replacement cost on everything else. State Farm's own site says some policies settle individual items, such as roof or siding claims, differently from the rest of the home.

State Farm describes the first method this way: some replacement cost policies "typically start with an ACV payment and then pay the remaining amount of the claim once the work is complete (time limits may apply)." Trade writers describe the second as an actual cash value endorsement for wind and hail on roof surfacing that often carries no age schedule, and the third as a table in the policy or an endorsement that fixes the percentage in advance (Rough Notes, January 2026). Which one your policy uses is a declarations-page question.

How Farmers' Scheduled Roof Payment Works

We could not find Farmers' Illinois filing online, and Farmers' Illinois page lists its Farmers Flex Personal Home product. What follows comes from the Smart Plan Home policy forms Farmers filed with regulators in Oklahoma and Nevada. If your Illinois policy uses scheduled roof payments, expect the mechanics to look similar and the numbers to be on your own endorsement.

The form says four things that matter:

• The scheduled roof payment is all the estimated reasonable costs to repair or replace covered roof damage, including debris removal, labor, taxes, and fees, multiplied by the scheduled roof payment percentage.
• The percentage comes from a chart keyed to the roof's age as shown in the declarations and its surface material. If a different actual age can be verified, damage to that material is adjusted on the verified age.
• For roof materials settled on a scheduled roof payment basis, the scheduled roof payment is deemed to be, and determines, the actual cash value of the loss. Increased costs from enforcing building laws, and general contractor fees, aren't paid until they're incurred.
• If the declarations show roof materials at replacement cost and the cost of the entire covered loss event is more than $2,500, Farmers pays only the scheduled roof payment for the roof materials until repairs or replacement are completed.

That last point is where the "two payments" idea comes from: a replacement cost roof paid in two steps, with the first step set by the schedule. A roof settled on a scheduled basis is paid at the scheduled amount. A Nevada amendatory endorsement (NV037) changes the form so the percentage is applied to each part of the roof by its own material and age, which shows these terms vary by state.

How Allstate's Roof Surfaces Schedule Compares

Allstate's published House & Home Policy, form AVP81, which Allstate lists on its Illinois policy contracts page, has a Building Structure Reimbursement provision that pays above actual cash value when you repair or replace within 180 days. The provision "will not apply to roof surface(s) when the loss is caused by windstorm or hail." Allstate's Roof Surfaces Endorsement (AVP84, in the copy we checked) then governs those losses: it pays the smallest of the repair cost, the scheduled percentage of replacement cost, or the limit of liability. The percentage applies to all roof surface components and the installation, including overhead, profit, labor, taxes, and fees, and the deductible applies in addition. Code-upgrade costs are not included.

Side by Side: Composition Shingles

Both documents have separate columns for wood, tile, slate, metal, and other materials that decline more slowly or more quickly, so check the column for your material. These are published forms from other states. Illinois forms and your own endorsement may use different ages and percentages. The full tables, with every material column, are in a machine-readable file at /data/roof-payment-schedules.json.

An Arithmetic Example

This is arithmetic only, not a cost estimate for any roof. Suppose a contractor's written estimate to replace a 15-year-old composition roof is $10,000. At 50.1% the Farmers form figure is $5,010. At 55% the Allstate AVP84 figure is $5,500. The deductible then comes off, and neither figure includes code-upgrade costs where the form excludes them. The homeowner owes the difference to the contractor. Where a schedule applies, the age on the declarations page and the estimate both move the answer, which is why a complete line-item estimate matters.

Recoverable Depreciation: How It Works and Where It Doesn't Apply

On a replacement cost policy that uses actual cash value first, the carrier calculates replacement cost, subtracts depreciation, and pays the difference. Depreciation recovered later is the holdback. The conditions are in the policy: Allstate's AVP81 gives 180 days after the actual cash value payment, and excludes wind and hail roof surfaces. The State Farm policy discussed in the Illinois Supreme Court's Sproull decision required repair or replacement within two years of the date of loss and notice within 30 days after the work was completed. Farmers' form, for a replacement cost roof, holds the payment at the scheduled amount until repairs are complete.

So there are three things to keep: the final invoice, proof the work is complete, and the carrier's own deadline. Ask the carrier in writing what it requires, because we could not verify the name of a standard completion form for any of these carriers.

For Illinois actual cash value settlements, a regulation requires the company to provide, on request, the worksheets detailing each deduction for depreciation, including age, condition, and expected life of the property (50 Ill. Adm. Code 919.80(d)(8)(A)). In Sproull v. State Farm Fire & Casualty Co., 2021 IL 126446, the court held that where the policy did not define actual cash value, depreciation could not be applied to labor. That decision did not address roof payment schedules, and its reach depends on policy wording.

What to Check on Your Declarations Page Before the Next Storm

• The loss settlement basis for the dwelling, and whether roof surfaces are treated separately.
• The roof age and roof material the carrier has on file.
• The name of any roof endorsement: a payment schedule, a roof surfaces endorsement, an actual cash value roof endorsement, or an extended coverage that restores replacement cost.
• The wind and hail deductible, which the Illinois Department of Insurance notes may be a separate amount, or a flat dollar or percentage figure tied to a specific part of the home such as the roof.

If you replaced the roof, send your agent the permit or the dated invoice. Farmers' May 2026 release recommends exactly that step, and the Farmers form adjusts on a verified age. Then read how each type of settlement plays out in our guides to RCV versus ACV roof claims and filing a claim versus paying out of pocket, and the carrier pages for Farmers, Allstate, and State Farm. The insurance claims page and public adjuster page cover what comes next, and a free storm damage roof inspection gives you a documented estimate to compare. If you have a denial letter instead of a low check, see our pages on Allstate, State Farm, and Farmers denials.

State Farm's Illinois roof terms weren't available to us. Missouri's insurance department described (its company pages were not loading when we rechecked on October 22, 2026, so treat this as unconfirmed) an optional State Farm wind and hail endorsement there that limits payment to a percentage of replacement cost on a pre-determined schedule, and says Farmers may require actual cash value based on roof condition there. Those are Missouri facts. They are a reason to read your own State Farm and Farmers endorsements, not a statement about Illinois.

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One Case Study, With the Receipts

On a recent insurance-funded roof, the carrier's first estimate missed 292 linear feet of gutter work. Our documented supplement recovered it: a $2,928 line added to the carrier's own estimate, with photos attached. And when we didn't complete a $13.81 downspout item on another project, the final invoice showed a $13.81 credit. Itemized in both directions, every time. The actual documents are on our billing transparency page.

Chicago Storm Pros is a service of C&N Construction, Inc. (cnroofs.com). Reviews, project counts, certifications, and ratings shown here reflect C&N Construction's work.