Receiving a roof insurance claim lettercan feel confusing and overwhelming. The paperwork is often full of unfamiliar terms and numbers, making it hard to know what your insurance will actually cover.
To understand your claim, it helps to know the four key components insurance companies use to calculate roof damage payments:
Actual Cash Value (ACV)
Replacement Cost Value (RCV)
Depreciation
Deductible
Once you understand these terms, you’ll have a much clearer picture of what you’re responsible for and what your insurance company will pay.
Actual Cash Value (ACV) represents the estimated value of your roof at the time of the loss, not the cost to replace it brand new.
Insurance companies calculate ACV by considering:
Materials
Labor
Taxes
Current market costs
The age and condition of your roof
Because wear and tear are factored in, ACV is lower than the full replacement cost of your roof.
Replacement Cost Value (RCV) is the amount it costs to replace your roof with new materials, without factoring in depreciation.
Here’s how it usually works:
The insurance company calculates the full replacement cost.
Depreciation is temporarily withheld.
Your deductible is subtracted.
You receive an initial payment to start the roofing work.
Once the roof is completed and proper documentation is submitted, the insurance company releases the remaining funds if your policy includes recoverable depreciation.
Understanding Your Deductible
Your deductible is the amount you are responsible for paying out of pocket before insurance funds are applied.
Deductibles are:
Set by your insurance policy
Often a fixed dollar amount or percentage of the claim
Paid directly to your roofing contractor
For most standard insurance claims, the deductible is your only out-of-pocket cost, unless you choose to upgrade materials or your policy does not include full replacement coverage.
Depreciation is the value your roof has lost over time due to:
Age
Normal wear and tear
Roofing material type
Overall condition
If your policy includes recoverable depreciation, the insurance company will release this amount after the roof is completed.
If your policy is ACV-only, depreciation becomes an additional out-of-pocket expense along with your deductible.
Knowing how ACV, RCV, depreciation, and deductibles work helps you:
Avoid surprises
Understand insurance paperwork
Know what you’re responsible for financially
Make informed decisions about your roof
Insurance claims don’t have to be stressful when you know what the numbers mean.
Roof Medics Roofing understands the insurance claim process and works closely with homeowners to make it clear and manageable. We’re happy to explain your estimate, answer questions, and help you understand exactly how your coverage applies to your roof.
If you have questions about your roof insurance claim or need help reviewing your paperwork, give us a call at (912) 231-7338. We’re here to help you every step of the way.