ACV vs RCV Roof Coverage: What Homeowners Get Paid
The difference between Actual Cash Value and Replacement Cost Value on a roof claim — with a real payout example.
Every homeowner policy pays roof claims one of two ways: ACV (depreciated) or RCV (full replacement). The difference on a $22,000 roof can be $8,000–$12,000 out of your pocket.
How ACV works
ACV = replacement cost minus depreciation based on age and condition. A 15-year-old 3-tab roof with a 25-year lifespan is 60% depreciated. On a $22,000 replacement, ACV pays roughly $8,800 minus deductible.
ACV policies are cheaper (10–25% lower premium) but you cover the depreciation gap out of pocket.
How RCV works
RCV pays full replacement cost minus deductible — but in two checks. Check 1 (ACV portion) arrives at claim approval. Check 2 (recoverable depreciation) arrives after work is complete and you send the final invoice.
You must complete the work within your policy's window (usually 180–365 days) to collect the recoverable depreciation.
Real payout example — $22,000 roof, $2,500 deductible
ACV policy: $8,800 − $2,500 = $6,300 payout. Homeowner owes $15,700.
RCV policy: $8,800 first check − $2,500 deductible = $6,300. Second check $13,200 upon completion. Total $19,500 covered; homeowner owes only the deductible.
How to know which you have
Check your declarations page under 'Coverage A — Dwelling.' Look for 'RCV' or 'Replacement Cost.' Also look for a 'Roof Payment Schedule' endorsement — FL, TX, and OK carriers increasingly attach these, which convert RCV to ACV for roofs over 10 years old.
Frequently Asked Questions
- Can I switch from ACV to RCV mid-policy?
- Only at renewal, and only if the roof passes a 4-point inspection. Roofs older than 15 years often can't be upgraded.
- What if I don't do the repairs — do I keep the ACV check?
- Yes, the ACV portion is yours. You just forfeit the recoverable depreciation.
Pillar guide: Roof Insurance & Claims
Start with the complete homeowner playbook, then estimate your project with our free calculators.