ACV vs RCV on a roof claim: which one you have, and what the gap costs you

Insurance carriers use two words (actual cash value and replacement cost value) that decide whether a hail claim pays for a new roof or pays for a quarter of one. The difference is documented on a single line of your homeowner policy. Almost no homeowner reads that line until after the storm, and by then the claim is already moving.

The 30-second version

ACV (actual cash value) pays you what the roof was worth right before the storm. That means replacement cost minus depreciation for age and condition. A 14-year-old asphalt shingle roof that would cost $14,000 to replace today might be worth $5,600 ACV, and that is what your carrier sends.

RCV (replacement cost value) pays the full replacement amount, but almost always in two installments: an ACV check first, then the remaining depreciation, called the recoverable depreciation, released after you submit invoices showing the work was completed. If you have RCV and you don't go through the second step, you leave the depreciation amount with the carrier. We have seen homeowners cash a $4,800 first check, pocket it, and never collect the $9,200 recoverable balance they were contractually owed.

This guide is about closing that gap.

How to read your dec page (and find which one you have)

The declarations page (dec page) is the cover sheet your insurer sends with every renewal. It is usually one or two pages, with your name, the dwelling address, the coverage limits, and, in a section labeled Loss Settlement or Coverage A – Dwelling, the line that decides ACV vs RCV.

Look for one of these phrases:

• "Replacement Cost" or "RC": full RCV. The whole dwelling, including the roof, settles at replacement cost.
• "Actual Cash Value" or "ACV": depreciation is deducted from every claim, no recoverable balance to chase.
• "Roof Surface Payment Schedule", "Roof Settlement Endorsement", or a form number like HO 04 93. This is the trap. The rest of the dwelling is RCV, but the roof is on a sliding ACV schedule by age. A 12-year-old roof might pay at 40 percent of replacement cost; a 20-year-old roof might pay at 25 percent.
• "Cosmetic Loss Exclusion": your carrier will not pay for hail bruising that doesn't penetrate the shingle mat, even if the granule loss accelerates roof aging.

If you can't find the loss settlement line, call your agent and ask: "On Coverage A, is the loss settlement basis replacement cost or actual cash value, and is there a roof surface payment schedule endorsement?" Get the answer in writing. Email is fine. This is the single most useful thing you can do before storm season.

The depreciation math, on a real roof

Asphalt three-tab shingles depreciate over roughly 25 years (the assumed useful life on most carrier schedules). Asphalt architectural shingles typically get 30. The depreciation is straight-line: a 12-year-old architectural roof has used 12 of its 30 years, so it has depreciated 40 percent. A 20-year-old roof has depreciated about 67 percent.

On a 2,200-square-foot single-story home with one tear-off layer:

• Replacement cost (May 2026, central Texas, GAF Timberline HDZ on 22 squares): approximately $14,400
• Less the wind/hail deductible (commonly 1 percent of dwelling coverage in TX/OK/KS, so on a $300,000 dwelling that's $3,000)
• Less depreciation on a 12-year-old roof (40 percent of $14,400 = $5,760)
• ACV check the carrier sends first: $5,640

If your policy is RCV, that $5,760 in withheld depreciation is recoverable: it gets released to you (or directly to the roofer, depending on the endorsement) after the work is done and the invoices are submitted. If your policy is ACV-only or you fall under a roof settlement endorsement, the depreciation is gone. The $5,640 check is the whole settlement.

Recoverable depreciation: the part that pays the roof off

This is the step most homeowners miss. After you sign a contract with a roofer and the work is completed, you (or the roofer, if invoices flow through them) submit:

1. The signed contract showing the agreed total price
2. The final invoice showing the actual cost of materials and labor
3. Permit close-out documentation (some carriers require this; many do not)
4. Lien waivers from the roofer and any sub-tier suppliers

The carrier reviews the invoices against the originally-approved scope, then releases the depreciation balance, usually within 30 days. If the final invoice exceeds the original estimate (legitimately, due to decking replacement or code-required upgrades that weren't visible on the first inspection), your roofer files a supplement for the difference. A good roofer expects to file at least one supplement on most hail claims.

State-by-state: where the rules tilt

Loss settlement rules are mostly set by the policy contract, not state law, but state regulators set the rules that determine what carriers can write into the contract.

• Texas: most policies are RCV by default, but post-2020 every major carrier (State Farm, Allstate, Farmers, USAA, Travelers) has added roof surface payment schedules to new and renewal hail-belt policies. Check your dec page after any renewal. Texas Insurance Code §707 makes it illegal for a roofer to absorb your deductible, an automatic disqualifier if a contractor offers it.
• Oklahoma: RCV common but most policies in tornado/hail corridors carry a 1 percent wind/hail deductible separate from the standard all-perils deductible. Effective July 1, 2026, contractors bidding residential work need a Residential Roofing Endorsement (Oklahoma HB 1628) in addition to their CIB registration. Verify the endorsement at verifyroofing.cib.ok.gov.
• Florida: post-2023 SB 2-A, residential roof AOBs are banned. Florida policies after the December 2022 special session also cap "labor depreciation": only materials may depreciate, not labor. Verify on your dec page; if depreciation reads "Materials Only" you are entitled to the labor portion in your first check.
• Louisiana, Alabama, Mississippi: most policies are RCV with a roof endorsement after roof age 15-20. The IBHS FORTIFIED program offers significant discounts in all three states (Alabama 35-55 percent wind premium discount on FORTIFIED Roof, Mississippi MWUA 20/25/30 percent depending on certification level). Worth asking your agent before the next renewal.
• Kansas, Missouri, Arkansas: RCV common, but "matching" disputes are frequent: carriers may pay to replace only the damaged slope, not the matching adjacent slopes. State law on matching varies; Missouri's matching statute is the most homeowner- favorable in the region.

When carriers push ACV-only roof endorsements

After the 2024-2025 hail seasons, most major carriers writing in TX/OK/KS added or strengthened roof surface payment schedules. The triggers we have seen at renewal:

• Roof age over 15 years
• Two or more wind/hail claims in the last five years
• A non-impact-resistant shingle (Class 1, 2, or 3, anything below Class 4)
• A previous claim where the carrier paid out more than 1.5 times the annual premium

If you got a renewal notice mentioning any of these, your roof basis is almost certainly moving to ACV. The leverage points: upgrade to a Class 4 impact-resistant shingle (15-35 percent premium discount in most hail-belt states), pursue a FORTIFIED Roof inspection if you are in the Gulf South, or shop the policy with carriers that still write RCV roof coverage in your ZIP. The difference is usually 20-40 percent on premium but covers thousands more on a future claim.

The four mistakes that leave RCV on the table

1. Cashing the ACV check and not completing the work. The depreciation balance is forfeited at the 180-day mark. We have seen homeowners do this thinking the first check was the whole settlement.
2. Signing a contract with the roofer's price equal to the ACV check. Some contractors will quote exactly what your first check is, do the work cheap, and pocket the rest. If your contract price is suspiciously close to your first check, you are probably looking at corner-cutting and the recoverable depreciation will not be claimed because the carrier sees matching numbers and assumes no balance is owed.
3. Letting the roofer file a supplement without seeing it. Supplements are normal and legitimate. Inflated supplements (sometimes coordinated with adjusters via kickback) are insurance fraud and you are the named insured, meaning the fraud is on your policy, not theirs. Ask for a copy of every supplement before it goes to the carrier.
4. Missing the deadline. Put the date of loss + 180 days on your calendar the day you file the claim. Many homeowners get through inspections and contracts in 60 days, then let the actual work slip to Spring because of weather or roofer availability, and discover at day 195 that the depreciation balance has expired.

The right roofer will talk you through all four of these unprompted on the first call. The wrong one will either avoid the topic or steer you toward an AOB. That signal alone is worth the conversation.

Related reading on this site:

• How a hail-damage insurance claim actually works, start to finish (the full process timeline, from storm to deductible check).
• Roofing scam red flags after a storm (the door-knocker and AOB patterns that target homeowners in the first 72 hours after a hail event).
• Questions to ask a roofing contractor (including the four questions specifically about how they handle ACV and recoverable depreciation).