Insurance & Claims

ACV vs. RCV: The Roof Insurance Terms That Decide Your Payout

The Peaks & Valleys field teamWritten by the crews and inspectors on the roofs

Guide2 min readLast reviewed July 7, 2026How we research

The short answer

Actual Cash Value (ACV) pays the depreciated worth of your old roof — often far less than replacement. Replacement Cost Value (RCV) pays for a new roof, but withholds the depreciation until the work is actually completed. Check your declarations page: which one you have changes your out-of-pocket cost by thousands.

Part of our guide to Will Insurance Pay for My Roof? A WA & OR Homeowner's Guide.

Two policies can cover the identical roof damage and pay wildly different amounts. The difference is three letters on your declarations page — ACV or RCV — and most homeowners don’t learn which they have until a claim is already underway. Here’s what each means for your wallet.

Actual Cash Value (ACV): depreciated

An ACV policy pays what your roof was worth at the moment it was damaged — its replacement cost minus depreciation for age and wear. On a 15-year-old roof, depreciation can knock 50% or more off the payout.

Example: a replacement costs $18,000. Your roof was 15 years into a 25-year life, so the carrier depreciates it ~60%. Your ACV payout is roughly $7,200 minus your deductible. You cover the rest. ACV policies are cheaper monthly for exactly this reason — the risk stays with you.

Replacement Cost Value (RCV): new for old

An RCV policy pays to replace your roof with new materials of like kind and quality — no depreciation deducted in the end. On that same $18,000 roof, you ultimately receive $18,000 minus your deductible.

But here’s the catch that trips up thousands of homeowners: RCV is paid in two checks.

First check — the ACV portion. The carrier issues the depreciated amount up front (~$7,200 in our example).
Second check — recoverable depreciation. The withheld depreciation (~$10,800) is released only after the work is completed and documented.

If you pocket the first check and delay or skip the work, you forfeit the second — the bigger one. We’ve seen homeowners lose five figures this way.

Why this matters for choosing a contractor

Recovering that second check requires completion paperwork the carrier will accept: final invoice, photos, and documentation matching the approved scope. A contractor who doesn’t understand the RCV process — or a “cash discount” operator who skips the paperwork — can cost you the depreciation recovery. We file the completion documents as standard, so the second check actually arrives.

Read your declarations page today

Don’t wait for a claim to find out. Your declarations page (the summary at the front of your policy) states whether roof coverage is ACV or RCV, and some policies split the difference — RCV on the structure, ACV on the roof specifically, especially for older roofs. Bring it to your free inspection and we’ll read it with you.

Two related reads: will insurance pay for your roof at all, and what a roof actually costs here — so you know what any payout is measured against.

Questions homeowners actually ask

What is the difference between ACV and RCV coverage?

ACV pays what your roof was worth when it was damaged, which is its replacement cost minus depreciation for age and wear. RCV pays to replace the roof with new materials of like kind and quality, with no depreciation deducted in the end.

Why does an RCV policy come in two checks?

The carrier issues the depreciated ACV portion up front, then releases the withheld recoverable depreciation only after the work is completed and documented. The second check is usually the larger of the two.

What happens if I keep the first check and skip the work?

You forfeit the second check, the recoverable depreciation, which is typically the bigger amount. The guide notes that homeowners have lost five figures this way.

How do I find out whether I have ACV or RCV?

Your declarations page, the summary at the front of your policy, states whether roof coverage is ACV or RCV. Some policies split it, with RCV on the structure and ACV on the roof itself, especially for older roofs.

Why does my choice of contractor affect the RCV payout?

Recovering the second check requires completion paperwork the carrier will accept, including a final invoice, photos, and documentation matching the approved scope. A contractor who skips that paperwork can cost you the depreciation recovery.