How do the conditions in an ACV vs RCV roof policy differ?
Short answer. An ACV roof policy pays the depreciated value once the claim is settled, whether or not you replace the roof. An RCV policy promises full replacement cost, but most require you to actually complete the repair or replacement, often within a set time, before releasing the held-back depreciation, and they pay no more than what you actually spent.
Typical RCV conditions
- Complete the work: the held-back depreciation is paid after the roof is actually repaired or replaced.
- Time limits: policies set a period for finishing the work or notifying the insurer of your intent to repair. The standard industry homeowners form uses 180 days after the loss for that notice, and carrier forms vary, so read yours.
- Actual cost cap: the insurer pays the smaller of the replacement cost estimate and what you actually spent.
- Like kind and quality: replacement cost is based on similar materials, so upgrades are on you.
- Proof: expect to send a final invoice, and sometimes photos or a certificate of completion.
Typical ACV terms
- The roof is paid at replacement cost minus depreciation.
- No completion requirement to collect it, because nothing is held back for the roof.
- Your mortgage company may still require repairs before releasing the money.
Practical consequences
- With RCV terms, letting the deadline pass can cost you the depreciation. If you need more time, ask the insurer in writing before the deadline.
- With RCV terms, a contract price lower than the estimate means a smaller depreciation release.
- With ACV terms, a complete scope matters most, because the depreciated value of every missed item is simply lost.
Deadlines differ by policy; see Georgia roof claim deadlines, and for collecting the second check, recoverable depreciation.