The Difference Between ACV and RCV Roof Insurance

Extreme weather seems to be more and more common each year. The damage these weather events cause can make things difficult for you and your family. Knowing what type of insurance coverage you have can be incredibly helpful. If something happens and you know exactly how your insurance will react, you can’t be blindsided during a crisis. Honey Bees Roofing & Solar knows that roofing insurance can be confusing, but we have a ton of experience helping customers like you. We’re using that experience to describe the difference between ACV and RCV roof insurance.

What is RCV?

Replacement cash value, or RCV, is coverage that guarantees the policyholder will get enough money to replace damaged items that are covered by the policy. However, it will only be enough to get items that are similar. For example, if your car is under an RCV insurance policy and is totaled, you’ll be able to buy a car of the same model and year. It wouldn’t be enough for you to buy a brand new corvette. Replacement cash value coverage has a higher deductible than ACV coverage. However,  you usually only have to pay your deductible out of pocket, everything else should be covered.

What is ACV?

Actual cash value, or ACV, is coverage that gives the policyholder money that the damaged items are worth when you make the claim. ACV unfortunately keeps the depreciation of your property in mind when it pays out its claims. So if an item is old or damaged, you’ll get less money back to replace it. If your roof is past its prime and needs to be replaced you’ll get significantly less money back. The claims adjuster will determine exactly how much your property has depreciated. They inspect your roof to determine how much it’ll take to replace it, its current condition, and how long it could last. Using that information they determine how much to give to you.

What’s Better?

The main differences between ACV and RCV roof insurance are claims payout and deductible price. Actual cash value and replacement cash value both have their benefits. RCV typically pays out more, since it’ll cover the whole replacement. But, it does have a higher deductible you’ll have to worry about. On the flip side, ACV doesn’t have a deductible that is quite as high. However, ACV might not cover an entire replacement, so you’ll have to pay more out of pocket. Sometimes you can recover some of the depreciation of your property, but it’s not typical.

Meet With Your Insurance Adjuster

Having to replace your roof is difficult. Whether you have ACV or RCV coverage, the insurance process can be stressful. Luckily, Honey Bees Roofing & Solar is here to help. We’ll meet with you and your insurance adjuster on-site to discuss the restoration plan for your home. We’ll help you navigate the homeowner’s insurance claims process, thus relieving you of stress and helping you get the best reimbursement you’re entitled to under your insurance policy. If you need help with roof repairs or understanding the roofing insurance process, Contact Honey Bees Roofing & Solar online or give us a call today at 817-668-6131!