ACV vs RCV roof coverage: what hail pays as your roof ages

How depreciation shrinks an actual cash value payout year by year, compared with replacement cost coverage.

Replacement cost value (RCV) pays what it costs to replace the roof, less the deductible. Most insurers pay in two checks: the first with depreciation held back, the rest once the work is done and invoiced. Actual cash value (ACV) subtracts depreciation for the roof's age and never pays it back. Many policies switch roofs to ACV, or to a payment schedule, once the roof passes a certain age.

What insurance pays on a $15,000 roof claim with a $2,500 deductible

Roof age	Asphalt shingles: RCV	ACV	Standing-seam metal: RCV	ACV
0 years	$12,500	$12,500	$12,500	$12,500
5 years	$12,500	$9,500	$12,500	$11,000
10 years	$12,500	$6,500	$12,500	$9,500
15 years	$12,500	$3,500	$12,500	$8,000
20 years	$12,500	$500	$12,500	$6,500
25 years	$12,500	$0	$12,500	$5,000

Straight-line depreciation over a typical life (25 years for asphalt shingles, 50 for metal). Real adjusters use their own schedules and may depreciate labor differently.

The gap grows with age: on a 20-year-old asphalt roof an ACV policy pays a fraction of an RCV policy for the same storm. If your roof is older, check whether your policy has already switched it to ACV or a roof payment schedule.

Not insurance advice. Examples are arithmetic on stated assumptions. Your policy's terms decide what is paid; ask your agent or a licensed public adjuster.