ACV and RCV policies produce different payouts from the same roof damage — on an older roof, the gap can easily run into the thousands. Knowing which type you have changes whether filing makes sense.
For how each policy type is calculated, how depreciation works under each, and worked examples of what each pays on the same damage, see the ACV vs RCV guide. This post focuses on the comparison and on when your policy type affects the filing decision.
Side-by-Side Comparison
| ACV Policy | RCV Policy | |
|---|---|---|
| First check amount | ACV − Deductible | ACV − Deductible (same) |
| Second check | None | Withheld depreciation, after repairs |
| Total payout | ACV − Deductible | RC − Deductible |
| Repairs required? | No requirement | Yes, to receive second check |
| Typical premium | Lower | Higher |
| Works best for | New roofs, tight budgets | Older roofs where depreciation is significant |
The first check is identical on both policies. The difference is the second check, which only exists on an RCV policy and only releases after you complete and document the repairs. Run your roof’s age, material, and deductible through the calculator to see both your first-check amount and total payout side by side, under either policy type.
How to Know Which Policy You Have
Your declarations page (usually the first 1-2 pages of your policy) lists the loss settlement type. Look for language like:
- “Actual cash value settlement” or “ACV” → ACV policy
- “Replacement cost settlement” or “Extended replacement cost” or “RCV” → RCV policy
- “Extended dwelling replacement cost” — typically applies to the structure overall, but check whether it applies to roofing specifically
Some policies have hybrid structures: RCV for most perils but ACV for roofing above a certain age. This is increasingly common in states with frequent hail claims. The age at which the switch happens varies by carrier and endorsement — there is no standard threshold, so don’t assume yours based on something you read online. Check your policy’s roof-specific endorsements to see whether an age-based ACV conversion applies to you; the declarations page guide shows exactly where to look.
If you’re not sure, call your insurer and ask specifically: “Does my policy settle roof claims at actual cash value or replacement cost value?”
Does Policy Type Affect Whether You Should File?
For small claims, the policy type matters less — if the ACV minus the deductible is low on an ACV policy, it’s also the first-check amount on an RCV policy. The RCV advantage only comes in the form of the second check.
For large claims on older roofs, RCV policies are substantially more valuable. The question of whether to file is different under each:
- ACV: Is (ACV − Deductible) > 0, and is that amount worth the CLUE record and potential premium impact?
- RCV: Is (RC − Deductible) > 0, are you willing and able to complete the repairs, and is the total payout worth the same CLUE and premium considerations?
On an RCV policy, the withheld depreciation is only released if you actually complete the repairs. If you’re considering taking the first check and deferring repairs, you’ll receive only the ACV amount — the same as an ACV policy. The RCV advantage requires completing the work.
When the Small Check Is the Right Check
If you have ACV coverage and the payout is small, the instinct is to feel underpaid. But on an older roof, a small ACV payout often reflects a roof that had genuinely used most of its insured life. The insurer isn’t undervaluing the damage — the policy is paying what the roof was worth at the time of loss, which on a 17-year shingle roof is substantially less than a new one. If the math produces a payout you wouldn’t have bothered filing for, that’s the math telling you something true about the economics of this claim.
For the full filing decision — deductible math, CLUE consequences, premium impact — see the should-you-file guide.
