How does an actual cash value roof policy pay on a claim?

A worked example

Hypothetical numbers: the replacement cost is $15,000. The roof is 12 years old and the adjuster depreciates it 4 percent a year, so 48 percent, or $7,200. Actual cash value is $7,800. Subtract a $1,500 deductible and the check is $6,300. With replacement cost coverage, the same claim would pay $6,300 now and $7,200 more after the roof was finished.

How depreciation is set

• The roof's age, from records or the adjuster's estimate.
• The expected life of the material.
• Condition: an unusually worn roof may be depreciated more.

Ask for the depreciation percentage and the age used. A wrong install year is one of the most common errors, and one of the easiest to fix with a permit or old contract.

ACV policy or ACV roof endorsement?

Some policies settle everything at actual cash value. More often only the roof surface is ACV through an endorsement, while the rest of the home stays on replacement cost. That difference matters for gutters, siding and interior damage paid in the same claim.

Should you keep it?

ACV roof coverage lowers the premium, but you take on the roof's depreciation risk. Ask your agent to price replacement cost coverage on the roof so you can compare the premium savings with the gap shown above. See ACV vs RCV and recoverable depreciation.