How do you tell if your roof insurance is actual cash value or replacement cost?
Short answer. Check your declarations page and the endorsements it lists: a roof settled at actual cash value or under a payment schedule will have an endorsement saying so, often with "roof" or "roof surfacing" in the title. If nothing changes the policy's main loss settlement terms, which usually pay replacement cost on the dwelling, your roof is likely covered at replacement cost. Confirm with your agent in writing.
Where to look
- Declarations page: the list of forms and endorsements with their numbers and titles.
- Loss settlement section of the main policy, which sets the default for the dwelling.
- Roof endorsements: titles mentioning actual cash value, roof surfaces, payment schedule or cosmetic damage.
- Renewal letters: changes are often announced in a short notice at renewal.
Questions for your agent
- "If hail ruined my roof tomorrow, would I be paid replacement cost after replacing it, or actual cash value only?"
- "Is there any roof endorsement on my policy, and when was it added?"
- "What would replacement cost on the roof cost me, and is it available at my roof's age?"
The difference in dollars
On a $15,000 roof with $6,000 of depreciation and a $1,500 deductible, replacement cost pays $13,500 in total after the work is done; actual cash value pays $7,500. See ACV vs RCV.
Getting back to replacement cost
- Replace the roof and send the invoice; many insurers restore replacement cost on a new roof.
- Shop carriers with more generous roof age rules.
- Ask whether an inspection showing good condition can change the terms.
Also see payment schedule endorsements.