RCV vs. ACV: Which one is better for my insurance policy?

If you’ve ever filed a roof insurance claim, you’ve probably heard the terms RCV and ACV — but what do they actually mean?

Understanding these two terms is key to knowing how much money you’ll receive, what you’ll have to pay out of pocket, and how your claim is processed. Let’s break it down in plain English.

What Is An ACV policy?

ACV stands for Actual Cash Value. This is the value of your roof right now, after subtracting for age and wear and tear.

If your roof is 10 years old, insurance companies will reduce the payout to account for depreciation. That means:

You’ll receive less money up front
You may not have enough to fully cover the cost of a new roof
You’ll likely pay more out of pocket to complete the work

ACV policies often result in lower monthly premiums, but higher out-of-pocket expenses when you file a claim.

What Is An RCV Policy?

RCV stands for Replacement Cost Value. This type of policy covers the full cost to replace your roof at today’s prices, not its depreciated value.

Here’s how it typically works:

Insurance pays the ACV first — a portion of the claim minus depreciation and your deductible
After the work is completed and documented, they release the depreciation (also known as the recoverable amount)
When you combine both checks, you’re paid the full replacement cost — minus your deductible

RCV policies offer more complete protection and are generally recommended in areas with frequent hail or storm damage (like North Texas).

Example: RCV vs. ACV in Action

Let’s say your roof has $20,000 in damage.

Your deductible is $2,000
The roof is 10 years old with $6,000 in depreciation

With an ACV policy:

Insurance pays: $20,000 – $6,000 depreciation – $2,000 deductible = $12,000
You pay the remaining $8,000 out of pocket

With an RCV policy:

Insurance pays: $20,000 – $2,000 deductible = $18,000
You only pay your $2,000 deductible

The difference? $6,000 more in your pocket with RCV coverage.

Why It Matters for Texas Homeowners

Here in Texas, storms are unpredictable — and roof claims are common. Choosing the right policy can make a big difference when it’s time to replace your roof.

ACV = Cheaper premiums, higher risk
RCV = Higher premiums, better coverage

Always ask your agent what type of coverage you have, and make sure your policy is up to date.

Final Thoughts

Don’t wait until after a storm to learn the difference between RCV and ACV. Knowing your coverage now can help you make smarter decisions when it counts.

If you’ve recently filed a claim — or just want help understanding your roof coverage — reach out to US Prime Roofing. We’ll walk you through your documents, explain your options, and make sure you’re covered the right way.

RCV vs. ACV