What does ACV roof coverage mean on my policy?
Short answer. If your policy or declarations page shows ACV roof coverage, a covered roof claim pays the actual cash value of the roof, replacement cost minus depreciation for age and condition, rather than the full cost to replace it. In practice, the older the roof, the more of the replacement cost you pay yourself, on top of the deductible.
Where to look
- Declarations page: check the forms and endorsements list. ACV roof terms appear as an endorsement whose title mentions actual cash value and roof surfacing or roof covering, or as a roof payment schedule.
- Coverage summary: some insurers print a line showing the roof is settled at actual cash value.
- The endorsement itself: read which perils it applies to and how it defines the roof.
What it means in dollars
A simple hypothetical: the insurer prices a full replacement at $14,000. The roof is 12 years old and the insurer uses a 25-year life, so depreciation is 48 percent, or $6,720. ACV is $7,280. Subtract a $1,000 deductible and the roof payment is $6,280. On a replacement cost policy, you would collect the $6,720 after the work is done; with ACV roof coverage, you do not.
What it does not mean
- It does not mean the roof is uninsured.
- It usually does not change how interior damage, gutters or other parts of the home are paid.
- It does not change your deductible.
Questions to ask your agent
- Does the ACV term apply to all perils or only wind and hail?
- What roof age does the insurer have on file?
- What would replacement cost roof coverage cost?
- Will a new roof remove it, and what proof is needed?
See ACV vs RCV and roof payment schedules.