Comparison · Insurance terms
ACV and RCV, in plain terms
Two ways a policy can pay for a roof, and the difference decides how much arrives and when. Worth understanding before a storm rather than during one. This is an explainer, not advice about your policy.
Schank Roofing · Scottsbluff, Nebraska · Updated 2026-09-22
Actual Cash Value
ACV pays the depreciated value. A roof most of the way through its life is worth considerably less than a new one, and the payment reflects that, so the gap between the cheque and the cost of the work is yours to cover.
The advantage is that an ACV policy usually costs less to hold. The disadvantage shows up exactly once, on the day you need it.
Replacement Cost Value
RCV pays what replacement actually costs. It typically arrives in two parts, and this is the part that surprises people:
- The first payment is the actual cash value, the depreciated amount, sent up front.
- The work gets done and invoiced.
- The rest, the recoverable depreciation, is released once the insurer has evidence the work was completed.
So an RCV policyholder often opens the first envelope and thinks they have been underpaid. They have not. The second part is conditional on the work actually happening, which is the whole design of it.
This is a common reason people abandon a claim they were entitled to complete. If your first payment looks low and your policy says RCV, that is worth a call to your agent before you conclude anything.
Where to find which one you have
It is in the declarations page of your homeowners policy, usually under the dwelling coverage. Some policies also carry a separate roof schedule that treats the roof differently from the rest of the house, particularly on older roofs, so it is worth reading that section specifically rather than assuming.
Your agent can tell you in about a minute. It is a much better question to ask in March than in July.
What a roofer can and cannot do here
- What we do
- Photograph and document the damage, chalk hail bruising so it shows in a picture, take measurements, and explain in plain language what you are looking at. We will meet your adjuster on the roof and point out what we found.
- What we do not do
- File the claim, negotiate it, or stand in for a licensed public adjuster. That is regulated work in Nebraska and we are roofers. We also will not touch your deductible in any form, which is not permitted for a Nebraska contractor.
Anyone promising to handle the insurance company for you, or to make the deductible go away, is telling you something they should not. That is worth knowing before you sign anything after a storm.