When your roof is damaged, your insurance coverage can make a big difference in what you pay out of pocket. Two common types of coverage—Replacement Cost Value (RCV) and Actual Cash Value (ACV)—can lead to very different claim outcomes.
RCV vs. ACV: What’s the Difference?
- Replacement Cost Value (RCV) pays to repair or replace your roof with new materials of similar kind and quality. It doesn’t factor in depreciation, so you get the full cost (minus your deductible). RCV policies typically have higher premiums, but they offer more protection when disaster strikes.
- Actual Cash Value (ACV) covers the depreciated value of your roof, meaning the payout reflects its age and wear. While ACV policies often cost less upfront, they can leave you with significant out-of-pocket expenses if your roof needs major repairs.
Example
Say your 10-year-old roof would cost $25,000 to replace today. If it’s depreciated by 50%:
- RCV: You’d receive $25,000 (minus deductible).
- ACV: You’d receive $12,500 and cover the rest yourself.
Why Disputes Happen
- Insurers shifting to ACV policies
- Damage assessments based on aerial imagery
- Confusing policy language
- Delays or low settlement offers
Protect Yourself
- Review your policy—know if you have ACV or RCV
- Document all damage with photos and notes
- Stay in touch with your insurer
- Request an independent appraisal
- Ask for a claim review
Get Help
If your insurance claim for roof damage is unresolved, file a complaint with DISB by calling 202.727.8000 or emailing X.