How does ACV pay for a roof replacement?
Short answer. If your roof is covered at actual cash value, the insurer pays the replacement cost minus depreciation for the roof's age and condition, minus your deductible, and that is usually the only roof payment you get. On an older roof the gap between that check and the real replacement price can be large, so plan how to cover it before you sign a contract.
How the payment works
- The adjuster prices a full replacement, the RCV.
- Depreciation for age and condition comes off, leaving the ACV.
- Your deductible comes off the ACV.
- Unlike a replacement cost policy, there is no second check for the roof's depreciation.
Why the gap is biggest on older roofs
Depreciation grows with age. A roof halfway through its expected life may be depreciated around half, and many insurers cap depreciation at a high percentage for very old roofs. Combined with a percentage wind and hail deductible, an ACV payment on an older roof may cover only a modest share of the replacement price.
How to plan for it
- Read the estimate to see RCV, depreciation and ACV for the roof lines. Other parts of the claim, like gutters or interior repairs, may still be on replacement cost.
- Confirm the depreciation inputs. A wrong roof age or life expectancy is common and fixable.
- Make sure the scope is complete. Missing items lower the RCV and therefore the ACV.
- Get a firm replacement price and work out your share.
- Line up a way to pay the difference. Robust Roofing, for example, offers financing. Never accept an offer to waive or rebate the deductible, which is illegal in Georgia.
After the new roof
A new roof often qualifies for better coverage. Ask your agent whether the ACV terms can come off once the replacement is documented with an invoice and permit. More background is in ACV vs RCV, roof age and insurance, and why a roofer cannot pay your deductible.