What does an ACV roof loss settlement endorsement change in your policy?
Short answer. It rewrites the loss settlement condition of your homeowners policy, the section that says how a covered loss is valued, so the roof is settled at actual cash value while the rest of the building usually stays on replacement cost. It does not change what is covered, only how much the roof part of a covered claim is worth.
What the loss settlement condition does
Every homeowners policy has a loss settlement section with the valuation rules: which property is paid at replacement cost, which at actual cash value, and what you must do to collect full replacement cost, such as completing repairs. It usually sits in the conditions for property coverage.
What the endorsement edits
- It moves the roof, often described as roof surfacing or roof covering, from replacement cost to ACV.
- In many versions, only losses from windstorm or hail are affected.
- It may define how ACV is calculated, sometimes with a table based on roof age and material.
What it leaves alone
- Whether the damage is covered at all.
- Your deductible and policy limits.
- How interior damage, siding, gutters and other parts of the home are valued, unless the endorsement says otherwise.
How to read yours
- Find the endorsement's form number on your declarations page and open it.
- Read the opening paragraph: it states which part of the policy is modified and for which perils.
- Look for a definition of the roof material affected.
- Look for any schedule or percentage table.
If there is a table, the endorsement may work as a payment schedule rather than plain ACV; see roof payment schedule endorsements. For the claim math, see ACV vs RCV.