How a property claim payment is calculated
Most Texas homeowners policies pay a claim in two stages. First, the insurer pays the actual cash value (ACV): the replacement cost minus depreciation and your deductible. Then, if your policy is a replacement cost (RCV) policy, it releases the withheld depreciation (the "holdback" or "recoverable depreciation") once the repairs are done and you send proof.
| Term | What it means |
|---|---|
| RCV | What it costs today to repair or replace the damage with like kind and quality. |
| Depreciation | The reduction for age and wear. On RCV policies it's usually recoverable; on ACV policies or ACV roof endorsements it isn't. |
| ACV | RCV minus depreciation. This is the first check, less your deductible. |
| Deductible | Your share. Wind and hail deductibles in Texas are often a percentage of your dwelling coverage, not a flat amount. |
Where the real money is: the scope, not the math
The calculator is only as good as the RCV you put in. In our experience, the biggest gap between a low payment and a fair one isn't depreciation. It's the scope: a slope left off, missing drip edge or starter course, no line for code-required items, interior drywall patched when it should be replaced, or general contractor overhead and profit omitted. Our guide to underpaid hail claims lists the items we see missed most often.
Does a public adjuster pay for itself?
The math is simple. With a 10% fee, the settlement has to rise by at least about 11.1% over what you would get on your own before you come out ahead. On a claim the insurer has scoped correctly, it won't, and we'll tell you so in the free review. On claims with missing slopes, interior damage or contents, the difference is often much larger than the fee. See how public adjuster fees work in Texas.
Texas law: a public adjuster's total commission may not exceed 10% of the settlement, and your name must be on every claim check (Tex. Ins. Code §4102.104).
Frequently asked questions
What is recoverable depreciation?
On a replacement cost policy, the insurer withholds depreciation from the first payment and releases it once you complete the repairs and send proof, such as a final invoice. Check your policy for any deadline to complete repairs and claim it.
Why is my first check so much lower than the estimate?
Because the first check is the actual cash value: replacement cost minus depreciation minus your deductible. The calculator shows each piece.
Does a percentage deductible apply to the whole claim?
A wind and hail percentage deductible is calculated on your dwelling (Coverage A) limit, not on the size of the claim. A 2% deductible on a $350,000 home is $7,000.
Is the public adjuster fee charged on money already paid?
That depends on the contract you sign, so ask before you sign. Get it in writing whether the percentage applies only to new money recovered or to the whole claim.
