Plain-English meaning
Roof loss settlement on an actual-cash-value basis, generally reflecting depreciation rather than full new-roof replacement cost.
Why it matters
An older roof may receive materially less after a covered loss than under replacement-cost settlement.
Where you may see it
Roof endorsements, schedules, declarations, quotes, and claim estimates.
What to verify
Age or condition trigger, depreciation method, deductible, cosmetic exclusion, and whether any replacement benefit remains.
Do not confuse it with
A roof exclusion, percentage deductible, or routine maintenance requirement.
For policy-specific meaning, read the definition and related provision in the issued policy.