What does ACV on roof surfacing mean?
Short answer. It means wind or hail damage to your roof surfacing, the outer roofing material such as shingles or metal panels, is paid at actual cash value, replacement cost minus depreciation, instead of full replacement cost. In the standard industry version of this endorsement it applies only to windstorm or hail losses, so roof damage from other covered causes, such as fire, is settled under the policy's normal terms.
What roof surfacing usually means
Roof surfacing refers to the outer weather surface of the roof: shingles, metal, tile or similar materials. Whether underlayment, flashing, vents, drip edge or decking count as surfacing depends on your policy's definitions, so read them. Items outside the definition may still be paid at replacement cost.
Why the windstorm or hail wording matters
The common industry version of this endorsement changes loss settlement only for roof surfacing damaged by windstorm or hail. In practice:
- A hailstorm ruins your shingles: the roof surfacing is paid at ACV.
- A fire damages the roof: the policy's regular loss settlement terms apply.
- Wind tears off shingles and rain damages a ceiling: the ceiling is not roof surfacing, so it is typically settled under the regular terms.
Carriers write their own versions, and some extend ACV terms to other perils or parts of the home, so check the form attached to your policy.
Things homeowners miss
- It can outlast the old roof. Replacing the roof does not automatically remove the endorsement. Ask your agent to review it once the new roof is documented.
- Other structures. Under standard homeowners forms, structures that are not buildings, like fences, are already settled at ACV.
- The deductible still applies. Your wind and hail deductible comes off the ACV payment.
See ACV vs RCV for the payment math and interior water damage coverage for what happens inside the house.