ClaimsTruth Analysis · SAMPLE-U
Claim Analysis Report
Structured analysis based on submitted documents and policy terms.
The carrier applied 30% depreciation to roof materials but the policy limits depreciation to 10%. This is one of the most common underpayment tactics.
Section 01
Claim Overview
Claim Type
Homeowners (Roof Damage)
Status
Approved but Underpaid
Documents
3
Report Date
2026-04-07T18:43:55.959Z
Documents Submitted
Section 02
Policy Coverage Summary
Policy Type
HO-3 Standard Homeowners
Coverage for structural damage to the home
Roof replacement or repair, subject to depreciation limits
Materials: 10% per year (max 50%), Labor: 5% per year (max 25%)
Analysis
The policy covers roof damage but applies depreciation. The approved payment is significantly below the contractor estimate due to excessive depreciation applied by the adjuster.
Section 03
Claim Outcome Analysis
This claim was approved but the payment is likely insufficient. The carrier applied depreciation rates that exceed policy limits, resulting in an underpayment of approximately $8,200.
Documented Financial Values
Claimed
$24,700
Approved
$19,700
Difference
$5,000
| Item | Submitted | Approved | Difference | |
|---|---|---|---|---|
| Material Cost (Shingles) | $18,500 (3-tab asphalt shingles, labor included) | $14,800 (30% depreciation applied) | -$3,700 (excessive depreciation) | |
| Labor Cost | $6,200 (roof installation, removal, disposal) | $4,900 (15% depreciation applied) | -$1,300 (labor not depreciated per policy) | |
| Total Shortfall | $24,700 (full replacement cost) | $19,700 (actual approval) | -$5,000 underpayment |
Section 04
Gaps & Inconsistencies
The carrier applied 30% depreciation to materials, but the policy limits material depreciation to 10% per year. At 5 years, the limit is 50%, not 30%. This is a policy violation.
Labor costs should not be depreciated at the same rate as materials. The policy clearly separates labor depreciation (5% max) from material depreciation (10% max).
Section 05
Red Flags
The adjuster used a depreciation rate that does not match your policy schedule. This is one of the most common reasons for underpayment.
Recommended Action
This is frequently cited as a basis for disputes. Verify the depreciation schedule matches your policy and that non-depreciable items (labor, materials) were not depreciated. Request an itemized breakdown of depreciation calculations.
Section 06
What Should Happen Next
Request Itemized Depreciation Schedule
Demand a detailed breakdown showing the depreciation calculation for each line item. Compare it directly to your policy depreciation schedule.
Obtain Contractor Estimate for Comparison
Ensure your contractor estimate matches standard regional pricing. Get 2-3 competitive quotes to establish fair market value.
Calculate Underpayment
Using your policy depreciation schedule, calculate what the approved amount should be. Document the difference.
Submit Formal Demand for Additional Payment
Submit written demand with your depreciation calculations and supporting estimates. Request payment within 14 days.
Section 07
Escalation Options
Request Appraisal
If the carrier denies your demand, you have the right to invoke the appraisal clause. An independent appraiser will determine the value and depreciation.
When to consider: Within 30 days of denied demand
File Complaint with Department of Insurance
File a complaint citing the specific depreciation violation. Provide your policy language and the adjuster calculations.
When to consider: If appraisal is refused or disputed
Legal Action
An underpayment of this magnitude may justify legal action. Consult an attorney regarding breach of contract or bad faith.
When to consider: If escalation does not resolve within 60 days
Section 08
Not Verified - Limitations & Unknowns
This analysis is limited by the documents provided. The following items could not be verified and represent gaps in the current understanding:
Adjuster Work Papers
The adjuster original notes, photographs, and calculations are not typically provided but are critical to verify their depreciation basis.
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Analyze ClaimThis report is generated from structured templates based on standard insurance policy language, industry practices, and interpretive guidance. It does not constitute legal advice. Specific policy terms, state regulations, and individual circumstances may affect applicability. Consult a licensed professional for advice specific to your situation.
ClaimsTruth · Report SAMPLE-U · 2026-04-07T18:43:55.959Z
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