Storm Damage HubACV vs. RCV: Understanding Your Roof Insurance Policy
The difference between these two policy types can mean thousands of dollars on your roof replacement claim.
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Replacement Cost Value (RCV) is the gold standard in roofing insurance policies. An RCV policy pays the full cost to replace your damaged roof with materials of similar kind and quality, without deducting for depreciation. This means if your 15-year-old roof is destroyed by hail, your insurance pays to install a brand-new roof at today's prices. The catch: most RCV policies pay in two phases. The first check covers the ACV amount (replacement cost minus depreciation). The second check, called the recoverable depreciation payment, is released after you complete the roof replacement and submit documentation.
What Is Actual Cash Value (ACV)?
Actual Cash Value (ACV) policies pay the depreciated value of your roof at the time of damage. If your roof was $15,000 when new and has depreciated by 40% over its life, your ACV payout would be around $9,000 (minus your deductible). You are responsible for the difference between the ACV payout and the actual cost of replacement. ACV policies are more common on older roofs (typically 15+ years) and in areas with frequent claims. Some Texas insurers have shifted to ACV-only policies for roofs over a certain age.
How Depreciation Is Calculated
Insurance companies use a depreciation schedule based on the type of roofing material, its expected lifespan, and its current age. For example, a 25-year architectural shingle roof that's 10 years old would be depreciated by roughly 40% (10/25). The depreciation rate varies by material: metal roofs depreciate slower than asphalt shingles because of their longer expected lifespan. Your adjuster applies these calculations to the replacement cost estimate to arrive at the ACV figure.
Why This Matters for San Antonio Homeowners
San Antonio sits in one of the most hail-active corridors in the country. Many homeowners don't know whether they have an ACV or RCV policy until they file a claim. Check your declarations page before storm season. If you have an ACV policy and your roof is older, you may want to discuss policy options with your insurance agent. An RCV policy typically costs a bit more in premium but can save you thousands when you need it most.
Key Takeaways
RCV policies pay full replacement cost (depreciation is recoverable after work is done)
ACV policies only pay the depreciated value, leaving you with an out-of-pocket gap
Check your declarations page to know which type you have before filing a claim
Older roofs are more likely to be on ACV policies
RCV payout typically comes in two checks: ACV first, then recoverable depreciation
Frequently Asked Questions
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Read GuideBack to Storm Damage HubImportant Disclaimer
Legacy Home Improvements is a licensed roofing contractor, not a public adjuster or insurance advisor. The information on this page is provided for general educational purposes only and should not be construed as insurance advice, claims guidance, or legal counsel. We do not interpret insurance policies, negotiate claim settlements, or advise homeowners on insurance matters. For questions about your specific policy, coverage, or claim, please contact your insurance company or a licensed public adjuster directly. Texas Insurance Code Chapter 4102 governs the practice of public adjusting in Texas.
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