Your insurance company sent you an estimate. It is 8 to 14 pages long, full of line items with codes you've never seen, and ends with a number that may or may not be what it actually costs to replace your roof. Here is how to read it — every section, line by line, with what to look for and what to question.
The Structure of an Xactimate Estimate
Most insurance carriers in Western PA and Northeast Ohio use a software platform called Xactimate to generate their estimates. The document it produces has a recognizable structure once you've seen a few. Understanding that structure is the first step to evaluating whether the number is correct.
The typical roofing estimate starts with a summary page showing the total, then moves into a room-by-room or section-by-section breakdown. For a roofing claim, "sections" usually include the main roof, any attached structures (garage, porch, dormer), gutters if damaged, and any interior rooms affected by water intrusion.
The Summary Page: Four Numbers You Need to Understand
Look for the summary section — usually the first or last page depending on the carrier. Find these four numbers:
RCV ($18,450) — This is what the carrier is saying it costs to fully replace what was damaged. This is the number to scrutinize, because if it is wrong, everything below it is wrong.
Depreciation ($5,210) — This is the carrier's estimate of how much value the damaged items have lost due to age. The depreciation percentage is based on the estimated age and condition of your roof. If the adjuster estimated your roof as older than it is, or applied higher depreciation percentages than warranted, this number is inflated — and your initial check is deflated. Your contractor should be able to identify this.
ACV ($13,240) — This is your initial check. On an RCV policy, this is the starting payment — you get the rest when work is done and you submit invoices. On an ACV-only policy, this is all you get.
Deductible ($1,500) — Subtracted from the ACV. This is your out-of-pocket responsibility per your policy. Know your deductible — some carriers have separate wind/hail deductibles that are higher than the standard deductible, sometimes expressed as a percentage of dwelling coverage rather than a flat dollar amount.
The Line Item Section: Reading What's There — and What's Missing
The line item section is where the real analysis happens. Each line typically shows: a description, a unit of measure (square, linear foot, each), a quantity, a unit price, and a total. Here are the critical line items to check for — and the ones most commonly missing or underpriced:
What Should Be There — Required Items That Often Aren't
Drip edge — remove and replace. Current ICC code requires drip edge on all re-roofing work. In Pennsylvania, local code enforcement follows ICC standards. Drip edge is a low-cost item — maybe $300 to $600 on a standard house — but it is a code-required item that must be installed. Its absence from an estimate is both an underpayment and a flag that the estimate was not written to current code.
Ice and Water Shield. This rubberized membrane is installed at the eaves (first 3 to 6 feet of the roof edge) and in valleys to prevent water from backing up under the shingles from ice dams. Most PA and OH codes now require it at minimum at the eave and in valleys. Check how many square feet are shown. If the estimate shows a flat 2-square (200 sq ft) on a house with complex geometry, multiple dormers, and long valleys, it is almost certainly underquantified.
Ridge cap material. Hip and ridge cap shingles are a separate, thicker product from standard shingles — pre-cut to fold over the ridge, with a specific installation method. Many estimates price ridge cap at standard shingle rates. Check the line item description. It should say "Hip and ridge shingles" or "Starter strip and ridge cap" — not just "Asphalt shingles."
Waste factor. Standard Xactimate waste factor for a simple gable roof is around 10-12%. A hip roof, a roof with dormers, skylights, or complex angles, generates significantly more waste — 15-20% is common, and some complex Pittsburgh-area roofs with multiple intersecting planes generate 25% or more. If your roof is more complex than a simple rectangle and the waste factor is 10%, the shingle quantity is short.
Overhead and Profit. Look for this at the bottom of the estimate, usually labeled "O&P" or "Overhead" and "Profit" as separate lines totaling 20% of certain categories. If you don't see it at all — and your claim involves more than one trade — flag it. The argument that a single-trade roofer doesn't warrant O&P is carrier-favorable, and we push back on it when the scope is legitimately multi-trade.
The Depreciation Detail: How Much Did They Take?
Most estimates include a depreciation schedule showing which items were depreciated, what age was used, and what percentage was applied. Find this section and look at two things: the age they assigned your roof, and the percentage they applied.
If your roof is 8 years old and the adjuster marked it as 14 years, your depreciation is significantly higher than warranted. If you have receipts from the last installation, permit records, or a clear timeline from a previous contractor, this can be corrected on supplement. Permits are public record in most PA and OH municipalities — your contractor can pull the permit history on your property to confirm installation dates.
The Final Number Check: Is the RCV Reasonable?
Once you have a contractor's independent estimate in hand, compare it against the carrier's RCV figure. In the current Western PA and Northeast Ohio market:
- Standard architectural shingle job: $380–$520 per square installed (varies by tear-off layers, pitch, and complexity)
- Premium or Class 4 impact-resistant shingles: $480–$680 per square installed
- Gutters, if included: $8–$14 per linear foot for standard aluminum
If the carrier's RCV on a 22-square house is $7,000 and your contractor's estimate for the same scope is $12,000, the gap is the supplement. Document every line, submit through proper channels, and in most cases you recover a meaningful portion of that difference.
Related reading: Our Storm Damage & Insurance Process | Why Carriers Lowball Claims | What To Do After Hail in Western PA