ACV vs RCV – What’s the Difference in Roof Insurance Coverage?

How Your Roof Is Covered Could Cost You Thousands—Know Before You File a Claim

If you’re a homeowner, you may have seen the terms ACV and RCV buried deep in your policy documents. But these three-letter acronyms can make a huge difference when it comes to your roof claim payout.

At Diamond Renovation and Roofing, we often educate homeowners during the claims process, and one of the most common questions is:"Why didn’t my insurance cover the full cost of the roof?"

The answer often lies in how your policy handles depreciation.

Let’s break this down in plain English.

🔍 What Is ACV? (Actual Cash Value)

ACV = Replacement Cost – Depreciation

This type of coverage pays you only the depreciated value of your roof at the time of the loss. That means:

• The older your roof is, the less your payout will be.

• You may be left with thousands of dollars in out-of-pocket costs to fully replace it.

Example:If your roof costs $15,000 to replace but it’s 15 years old, your payout might only be $6,000. The other $9,000? That’s on you.

This is common in older homes or basic coverage plans, especially in high-storm regions where insurers try to limit their exposure.

💰 What Is RCV? (Replacement Cost Value)

RCV = Full Cost to Replace the Roof

RCV policies cover the full cost of a new roof, minus your deductible. The payout typically happens in two parts:

1. ACV Payment Up Front – What your roof is worth today (depreciated)

2. Depreciation Payment After Work Is Completed – The remaining balance to cover the full replacement

This means you’re reimbursed in full, as long as you follow through with repairs using a licensed contractor and provide all the required documentation.

🧾 Important Note: You Must Complete the Work to Get Full Payment

Even with an RCV policy, insurers won’t release the depreciation check until the roof is replaced and invoiced. This is where homeowners sometimes lose money—if they delay, downgrade, or use an unlicensed roofer, they may forfeit part of their payout.

🧱 What You Can Do

• Review your policy now: Look for “Actual Cash Value” vs “Replacement Cost.”

• Ask your agent what’s covered before you have a claim.

• If you have ACV, consider upgrading your coverage if you can.

• Work with a roofing contractor who knows how to properly document everything for RCV release. (That’s where Diamond comes in.)

🎯 In Summary

Policy Type	Pays For	You May Owe
ACV	Depreciated value of roof	The difference between payout and full cost
RCV	Full replacement cost (minus deductible)	Just your deductible

At Diamond Renovation and Roofing, we walk you through this every step of the way—no jargon, no surprises, just honest guidance and experienced insurance navigation.

Still unsure what your policy covers? Contact us—we’re happy to review it with you, free of charge.