ACV vs. Replacement Cost: Home Insurance and Roof Insurance

Originally published on our previous website in 2015. Some details, such as companies, coverage options and state requirements, may have changed since then. Call or text 765-474-2300 for current information.

If your roof is damaged due to a covered peril, do you know how your insurance will respond? Some policies are converting to ACV, or actual cash value. This means your insurer may agree to repair or replace your roof, less your deductible and depreciation for the age of the roof. With replacement cost, the insurer will pay to replace the damaged area without factoring in depreciation, after you pay the deductible.

If you are interested in learning more about ACV versus replacement cost, below is a link to a great article written by Jay MacDonald at Bankrate.

http://www.bankrate.com/finance/insurance/roof-insurance-acv-vs-replacement-cost.aspx

Update (October 2026): Many policies settle roof claims on an actual cash value basis, especially for older roofs. Check your declarations page, or ask us to review it with you. See our homeowners insurance page.