RCV vs. ACV Claims for Roof Damage: How Your Insurance Impacts What Coverage You Get

Did your home get damaged in a recent Seattle wind storm? Are you staring at your homeowners’ insurance policy and wondering what all these terms mean and ultimately what that means for how much of your roof is covered?

At RoofSmart, we are committed to getting you the best coverage possible to help you fix your roof damage. In fact, the last 100 customers of ours who filed for coverage got an increase on their claim after we helped them negotiate with their insurance company.

In this article, you’ll learn how much coverage you get based on the type of insurance you have (RCV or ACV) and the other factors that impact how much coverage you’ll get.

By the end, you’ll understand how much your insurance company will cover and how much you’ll be expected to pay based on the type of insurance you have.

What types of coverage do insurance companies offer?

Ideally, your homeowner’s insurance will cover the entire cost of the roof repair, which means you’d only be responsible for the deductible. But the amount of coverage you get depends on what kind of insurance you have.

There are two broad categories of insurance:

• Replacement cost value (known as RCV)
• Actual cash value (known as ACV)

These two types of insurance offer different levels of coverage and don’t always have the same policies. Most homeowners have RCV policies. Typically, ACV coverage is only used for rental properties.

What is RCV and what coverage does it offer?

RCV coverage is meant to give you the amount of money that it costs to fix your roofing problem at the current market value for shingles and other needed roofing materials. The idea is that you are able to get your roof back to the condition that it was in before the storm damage occurred.

There is no depreciation based on the age of the roof. You’ll get coverage for repairing or replacing your roof based on how bad the damage is.

For example, if you needed to replace your entire asphalt roof and you live in the Greater Seattle area, you would get somewhere between $20,000 to $30,000 because that’s how much a new roof would cost.

What is ACV and what coverage does it offer?

ACV coverage also aims to get your roof back to the condition it was in before the damage. However, ACV is calculated based on depreciation. In other words, the older your roof was before the damage occurred or the worse condition it was in, the less money you’ll get to repair or replace it.

So if you needed to replace your 20-year roof that was installed 10 years ago, you’d probably only get about half of its original cost. For example, if it cost $30,000 to install when it was new, you might only get $15,000 now from your insurance company.

How do you get the payment for your insurance claim?

Most of the time, the money from insurance claims goes directly to the customer (but if the mortgage company is on the check it has to go to them before it can get released to the customer).

With an RCV, you’ll get three different checks. With an ACV it will just be one.

You’ll get the first one for the approved estimated ACV for the roof damage. Then, if you have RCV coverage, you’ll get the rest of the money for the RCV payment once you’re on track to actually fix the roof. The insurance company will know that you’re fixing the roof when you send proof that you hired a roofing contractor.

The third check will cover any supplemental items because you can’t always see everything before you start working on the roof. For example, sometimes after you start you find additional damage that happened during the storm. In that case, you’ll get another check for it once that’s been justified to the insurance company and they agree to cover it.

What type of roof damage does insurance coverage exclude?

Even if your claim gets approved, your insurance company will still have limitations on what it will cover. There might be work that you want done that falls outside of the scope of repairing the storm damage. So, aside from the contribution you make with your deductible, there are some different scenarios where you would be required to pay for roof work.

Bringing your roof up to code

You might get coverage to fix your shingles, but your roof still needs to be brought up to code. Building codes change all the time, so many homes are out of date. Some examples of roof issues that aren’t up to code include:

• Having shiplap instead of plywood for the roof deck
• Improper ventilation
• Improper amount of insulation

Some insurance policies have supplemental coverage for building code coverage, but some don’t. Your insurance company might give you enough to cover the damage but not enough to bring it up to code. So, you would need to check your policy to see if you can get coverage for bringing your roof up to code. Otherwise, you will have to pay for that.

Getting a full roof replacement or a new type of roof

What if your asphalt roof is damaged, but you want to replace it with a metal roof? This is a major jump in price, so it’s very unlikely that your insurance company will pay for this. They might give you a certain amount to cover repairs for an asphalt roof, but the rest is on you because you want to upgrade.

Sometimes your insurance company will offer coverage for half of the roof because only half is damaged. But if you want the rest of the roof to be replaced so that it matches, then that cost is up to you.

Mold

Your roof may get damaged during a storm, which leads to the discovery of mold in your attic. You might wonder if insurance would help you pay for getting rid of mold, but because the mold happened before the storm damage, it will be on you to pay for its removal.

Mold removal and remediation do not typically fall under insurance coverage. The only exception to this would be if the storm damage to your roof caused a leak that resulted in mold. Insurance would cover that because it would be considered part of the damage caused by the storm.

Coverage limits

The other thing to keep in mind is that there is a cap on how much coverage you can get depending on your policy. So, if the amount of coverage you receive is less than the total cost of the repairs, then you’ll have to pay out of pocket for the rest.

For example, you might have $10,000 worth of mold remediation that needs to be done, but your policy only covers up to $4,000 for that. So, you would need to pay the remaining $6,000 yourself.

How do I know if filing a claim is worth it?

Sometimes it can be difficult to determine if filing a claim is worth all of the paperwork and the back-and-forth with your insurance company. To help you make your decision, here are some questions to ask yourself:

• Is this covered under my policy?: This might seem obvious, but it’s important to check your policy to see if the type of damage you have is actually covered. If you have a roof that’s worn out due to old age, you’re probably out of luck. But, if there was a fire, a car hit your house, or a storm came in and blew a tree through your house, then that is most likely covered.
• How much is my deductible?: It’s important to consider how much your deductible is compared to how much damage your roof has. If you have a lower deductible of around $1,000 then it is most likely worth it to file a claim because the damage will probably cost more than that to fix. However, if you have a $10,000 deductible then you should have a roofing contractor assess the damage to see if it will cost more than that. With that high of a deductible, the average person might not need that much money for repairs after a storm (but the cost varies in each individual situation).
• Do I need this fixed right away?: Of course, everyone wants their roof fixed as soon as possible. But getting approval from an insurance company can take a long time. So, if you need your roof fixed as quickly as possible, then filing an insurance claim will be an extra frustrating process.

If your priority is getting it done quickly and you don’t really care about the cost, then you might consider skipping the claim. You can choose to file a claim after the repair is done, but that will make it even more difficult to get approval.

Most people will have enough damage that it is worth filing a claim and asking for coverage. The insurance company will assess the damage and give their own number, but they are not roofing experts so they don’t always give accurate pricing or consider everything that should be covered.

They might deny your claim or only give you a small amount of coverage because they determined that the damage is minimal. Bringing in a roofing company that has worked with insurance companies can help you out a lot in this situation.

They will be able to accurately assess the damage and they can help you negotiate with your insurance company to make sure that you’re getting the right amount of coverage. And, if the claim turns out to be not worth it, you can always cancel it and pay another way instead.

Who can help you understand your roof insurance coverage?

If you are having trouble during the process of filing your claim, there are resources available to help you.

If you’re struggling to understand your insurance policies, reach out to your insurance company and ask for clarification. They can also help you fill out your claim.

If you are having trouble during the negotiation process and want help getting better coverage for the repairs you need, hire a public adjuster or a roofing contractor who is experienced with insurance claims.

Having extra support and expertise during negotiations can make the process much easier for you and increase your chances of getting more coverage.

How can I get started filing my claim?

Navigating insurance claims for roof damage can feel daunting, but understanding the difference between RCV and ACV coverage is a powerful first step. Whether you’re weighing your policy options, assessing the value of filing a claim, or addressing unexpected repair costs, having the right information ensures you make the best decision for your home and finances.

Now that you understand the different types of insurance policies and know which resources are available to help, you’re ready to file an insurance claim.

Not sure how to fill out an insurance claim for damage on your roof? Read our article “4 Steps For Filing An Insurance Claim For Roof Damage” for a step-by-step guide.