What is an ACV roof coverage endorsement?
Short answer. An ACV roof coverage endorsement is an add-on to a homeowners policy that changes how roof damage is paid, from replacement cost to actual cash value, so depreciation for the roof's age comes out of your settlement and is not paid back. It is usually added because of roof age, and you can often get it removed by proving a newer roof age, replacing the roof, or moving to a policy without it.
How it ends up on your policy
- New policy on an older roof: the insurer offers coverage only with the endorsement.
- Renewal: a notice says roof coverage is changing. These notices are easy to miss in a renewal packet.
- Policy choice: some carriers offer it to lower the premium.
What it changes
Only the loss settlement for the roof, often just for wind and hail. It does not remove coverage, change your deductible or affect the rest of the house. The practical effect is that a claim pays the depreciated value of the roof with no second check.
Ways to get it removed
- Correct the roof's age. If the insurer's records show an older roof than you have, send the permit, invoice or warranty registration.
- Replace the roof. Ask the insurer what it needs, typically an invoice, permit and photos, and request removal in writing. It may not come off automatically.
- Ask about impact-resistant shingles. Some carriers give better terms or discounts for certified impact-resistant roofs.
- Shop. Another carrier may offer replacement cost roof coverage at your roof's age.
Before you accept a renewal
Compare the premium savings with the depreciation you would absorb on a claim. A new roof on ACV terms loses little; a 15-year-old roof on ACV terms can lose a lot. See roof age and insurance and ACV vs RCV.