How does an ACV roof policy work?
Where ACV roof coverage comes from
Some policies settle everything at actual cash value. More often, a policy pays replacement cost for the house but adds an endorsement that pays the roof surfacing at ACV for wind or hail. Insurers commonly add these once a roof reaches a certain age, and they can appear at renewal. Some versions use a percentage table by roof age and material instead of calculating depreciation line by line.
A worked example
Suppose a new roof would cost $15,000 and your roof is 15 years old with an assumed 25-year life. Depreciation is 60 percent, or $9,000, so ACV is $6,000. With a $2,000 deductible, the payment is $4,000. On a replacement cost policy you would eventually receive $13,000. On an ACV roof, the $9,000 is gone for good.
What ACV usually does not change
- Interior water damage from the same storm may still be paid at replacement cost.
- Gutters, siding, and screens may fall outside the roof endorsement.
- The deductible applies the same way.
Ways to handle an ACV roof
- Confirm the roof age the adjuster used; a wrong age changes the whole figure.
- Make sure every damaged item is in the estimate, since a complete scope still raises the ACV.
- Ask your agent whether replacing the roof restores replacement cost coverage going forward.
Related: ACV vs RCV roof claims, roof age and insurance, and the roof payment schedule endorsement.