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  • Writer's pictureDavid Fohr

RCV vs ACV insurance for your roof



If you're a homeowner or business owner with a roof to protect, you've probably heard of ACV and RCV insurance. But what exactly do these terms mean, and what's the difference between them? Let's take a closer look.


ACV, or actual cash value, insurance is a type of insurance that pays out based on the current value of your roof. This means that if your roof is damaged, your insurance company will calculate the current value of the roof, taking into account factors like age, wear and tear, and depreciation. They'll then pay out that amount, minus any deductible you have.


RCV, or replacement cost value, insurance, on the other hand, pays out based on the cost to replace your roof. This means that if your roof is damaged, your insurance company will cover the cost to replace it with a similar quality and type of roof, up to your policy limits. You'll still need to pay any deductible you have, but you won't be out of pocket for the full cost of a new roof.


So what's the difference between these two types of insurance when it comes to roofing? The main difference is that ACV insurance is generally cheaper than RCV insurance, but it may not provide enough coverage to fully replace your roof if it's severely damaged. For example, if a tree falls on your roof and causes extensive damage, ACV insurance may only cover a portion of the cost to repair or replace the roof, while RCV insurance would cover the full cost.

In addition, ACV insurance takes into account depreciation, which means that older roofs or roofs that have been subject to wear and tear may not be fully covered. RCV insurance, on the other hand, is designed to cover the full cost of replacing your roof, regardless of its age or condition.


When it comes to choosing between ACV and RCV insurance for your roof, there's no one-size-fits-all answer. It depends on factors like the age and condition of your roof, your budget, and your risk tolerance. If you have an older roof or one that's been subject to wear and tear, RCV insurance may be the better choice. If you have a newer roof or one that's in good condition, ACV insurance may provide enough coverage.


Ultimately, the best way to determine which type of insurance is right for your roof is to consult with a licensed insurance professional. They can help you understand the pros and cons of each type of insurance and recommend a policy that meets your specific needs and budget.

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