ACV vs. RCV Roofing Coverage
ACV pays the depreciated value of your roof. RCV pays the full cost to replace it, usually in two payments, with the depreciation released after the work is done. On an older roof the difference between them can be most of the project cost.
A worked example
Suppose replacing your roof costs $20,000, the roof is 12 years old with a 20-year expected life, and your deductible is $2,000. These numbers are illustrative only; your policy governs.
| ACV policy | RCV policy | |
|---|---|---|
| Replacement cost | $20,000 | $20,000 |
| Depreciation (12 of 20 years) | -$12,000 | -$12,000 withheld initially |
| Deductible | -$2,000 | -$2,000 |
| First check | $6,000 | $6,000 |
| After work is completed | Nothing further | $12,000 depreciation released |
| Your total out of pocket | $14,000 | $2,000 |
That is the entire argument for reading your declarations page. Many Texas homeowners are moved to ACV roof coverage at renewal, often to reduce the premium, and find out at claim time. Some carriers apply ACV automatically once a roof passes a certain age.
How to check what you have
- Look at your declarations page for wording such as "roof surfaces: actual cash value" or a roof payment schedule endorsement
- Look for a separate wind and hail deductible, often expressed as a percentage
- Ask your agent directly what your roof would be paid at today
- Ask what the premium difference would be to move back to RCV
Frequently asked questions
- What is recoverable depreciation?
- It is the portion of the claim your carrier withholds initially on an RCV policy and releases once the work is completed and documented. On an ACV policy, depreciation is not recoverable at all.
- How is roof depreciation calculated?
- Typically by age against expected service life, adjusted by condition and material. Carriers use different schedules, so two policies can depreciate the same roof differently.
- Can I switch from ACV to RCV coverage?
- Often yes, at renewal and usually for a higher premium, and some carriers require a roof inspection or a roof under a certain age. Ask your agent.
- Does RCV mean I pay nothing?
- No. You still pay your deductible, plus any upgrades you choose beyond the covered scope, such as moving to Class 4 shingles.
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