Roof Replacement vs ACV Policies

A roof is by far any building’s best defense against all the weather that nature can throw at it. However, over time a roof will start to take damage from inclement weather. Many people wonder how their insurance policy will cover that damage to their roofing. Most insurance policies have one of two types of coverage for roofing. Your roof’s value can be its current condition or its full replacement cost. Roof replacement vs ACV policies, but which one is better? And what are their differences? It’s important to understand your coverage to have a better understanding of how your policy protects your home.

Types of Roofing Insurance Policies

Homeowner’s insurance should cover your roof, but the type of coverage can vary greatly. In fact, there may be situations in which your roof isn’t covered at all. For example, if your roof is far too old or if it’s in incredibly poor condition then your insurance company may exclude coverage for roof damage. If you’re unsure what your policy covers then you should call your agent for more information.

Actual Cash Value (ACV)

Actual cash value coverage means that your insurance company will pay you for the value of your roof in its current state. In simpler terms, the depreciation of your roof is a major factor in your settlement’s payout. A claims adjuster will come and inspect the roof to determine its value and its remaining life. They’ll then determine the depreciation and use all of that information to determine your actual cash value. ACV insurance is typically cheaper than other policies and is generally for older roofs or roofing in poor condition. In most cases, you can choose if you want an ACV policy or something else. However, sometimes the age of your roof may be so great that you aren’t given the option by your insurer.

Replacement Cost Coverage

Replacement cost coverage means that your insurance will completely pay to replace your roof with a similar roof. The claims adjuster will research what roofing is similar to yours in material and base the settlement on the research they do. The settlement should entirely cover the cost of replacing your roof. That means that the only thing you’d have to pay for out of pocket would be the deductible. However, replacement cost coverage is typically more expensive than ACV coverage. In addition, most insurance providers will turn a replacement cost policy into an ACV policy after the roof gets to a certain age. For most policies, it’s when the roof becomes 15 years old.

Call a Professional

Roof replacement vs ACV policies, which is right for you? It mainly depends on how much you’re willing to spend on your roofing insurance, plus the age and condition of your roof. If you’re interested in installing a new roof or need help repairing your roof then Contact Honey Bees Roofing & Solar online or give us a call today at 817-668-6131! We offer free roofing inspections so we can help you choose the best roofing option for your home. We are one of the leading solar installers for the Burleson, Fort Worth, area and can help you take steps to have one of the most energy-efficient options possible. If you want to have a lower energy bill, keep your home cooler, or help the environment with energy-efficient roofing options then don’t hesitate to contact us!