RCV versus ACV: how roof insurance claims get paid
July 2, 2026 · Vlaag Roofing
If you’ve started reading your homeowners policy, you’ve probably run into two sets of initials: RCV and ACV. They decide how a roof claim pays out, and the difference can be significant, especially on an older roof. Here’s what each one means in plain terms.
The standard note first. We’re roofers, not your insurer, and we don’t set or negotiate these terms. They live in your policy. Your agent is the right person to confirm which one covers your roof.
RCV: replacement cost value
A replacement cost value policy is written to cover replacing your roof with a new one of like kind and quality, without subtracting for age.
These policies commonly pay in two parts. First, the insurer sends the actual cash value amount up front. Then, after the work is done and they have the final invoice, they release the remaining portion, often called the recoverable depreciation. The practical effect is that once the job is complete, an RCV policy is built to cover the cost of the replacement beyond your deductible.
ACV: actual cash value
An actual cash value policy factors in depreciation. It values your roof as what it was worth at the time of the loss, given its age and condition, not what a brand new roof costs.
So on an ACV policy, an older roof is valued as an older roof. If your roof was fifteen years into its life when the storm hit, the payout reflects that wear, and the gap between that amount and the cost of a new roof is yours to cover. There’s no recoverable depreciation to collect later the way there is with RCV.
Why the age of your roof matters so much
Depreciation is the whole reason these two can land in very different places. On a newer roof, ACV and RCV aren’t far apart, because there isn’t much age to depreciate. On an older roof, the two can be worlds apart.
This is also why some insurers move older roofs onto ACV coverage, or add roof-specific terms, as a roof ages. It’s worth knowing which one you have before a storm, not after.
What this means for your out-of-pocket
The type of coverage, plus your deductible, is what shapes your share of a covered replacement. We don’t decide any of that, and we never quote what your insurer will pay. What we can do is give you a clear, written, itemized estimate for the actual work, so you and your insurer are both looking at a straight number for the roof itself.
The honest version
RCV is written to cover a new roof beyond your deductible once the work is done. ACV pays the depreciated value and leaves the age gap to you. The older your roof, the more that difference matters. Read your policy or ask your agent which one you have, so there are no surprises after a storm.
Need a clear, itemized look at what your roof actually requires? Book a free inspection and we’ll document the condition and put honest numbers on the work.