Should your home insurance cover the roof at ACV or RCV?
How to tell which you have
- Look on the declarations page for replacement cost next to dwelling coverage.
- Then read the endorsements. A separate roof endorsement can switch the roof alone to actual cash value, or to a roof payment schedule, even when the rest of the house stays at replacement cost.
- Ask your agent in writing exactly how your roof surfaces are settled on a wind or hail claim.
What the difference costs on a claim
On a new roof the gap is small. As the roof ages it grows: a roof halfway through its expected life may be paid at roughly half its replacement cost under ACV. On a typical North Georgia replacement of $8,000 to $16,000, that can mean thousands of dollars out of pocket.
Why insurers move roofs to ACV
Wind and hail are among the most common causes of homeowners claims, and older roofs are both more likely to be damaged and more expensive to settle. Insurers respond by limiting coverage on older roofs. Some will restore replacement cost after you replace the roof, so ask what age or condition qualifies. See roof age and insurance.
When ACV might be acceptable
If RCV is not offered for your roof, or the premium difference is large and you could fund a replacement yourself, ACV may be a reasonable trade. Weigh it against the size of a likely payout gap. The claim-time mechanics are in ACV vs RCV roof claims.