What is the ISO ACV roof endorsement?
What ISO is
Insurance Services Office (ISO) publishes standard policy forms that many insurers adopt or adapt. HO 04 93, titled Actual Cash Value Loss Settlement Windstorm or Hail Losses to Roof Surfacing, is one of them. Your insurer might use an ISO edition, a modified version, or its own form with a different number.
What it changes
- Roof surfacing only. The form defines what counts; generally it is the roof covering, while things like gutters or interior water damage fall outside it.
- Wind and hail only. A roof damaged by another covered peril may still be paid at replacement cost.
- No holdback. Depreciation on the roof surfacing is not paid later, even after you replace the roof.
Older versus newer editions
Older editions simply said actual cash value, which left depreciation to the adjuster's judgment. Newer editions use a table: the replacement cost of the roof surfacing is multiplied by a percentage based on the roof's age and material type. That makes the result predictable, but often low on older roofs.
How to tell if you have it
Look at the forms list on your declarations page for HO 04 93 or a title mentioning actual cash value and roof surfacing. Ask your agent whether it was added because of roof age and whether replacing the roof gets it removed, since the endorsement generally stays until the insurer takes it off.
Related: ACV vs RCV, the roof payment schedule endorsement, and roof age and insurance.