RCV vs ACV vs Roof Schedules: What Your Insurance Policy Really Covers (And What It Doesn’t)

When it comes to storm damage, your roof coverage can mean the difference between a full replacement or paying thousands out of pocket. Many Texas homeowners are surprised to learn that their policy doesn’t always guarantee full coverage.

Insurance companies have shifted away from the more generous Replacement Cost Value (RCV) toward Actual Cash Value (ACV) or roof payment schedules. Each type of policy works differently—and impacts your claim in a big way.

Replacement Cost Value (RCV):

RCV is the most homeowner-friendly option. It covers the full cost to replace your roof with materials of similar quality, minus your deductible.

For example, if a 12-year-old roof is damaged by hail, the insurance company would still pay for a full replacement (after your deductible). This coverage offers the most protection, but it’s becoming less common and usually comes with higher premiums.

Actual Cash Value (ACV):

ACV takes depreciation into account. That means the older your roof, the less money you’ll get.

For instance, if your roof has a 20-year lifespan and is already 10 years old, the insurer sees it as halfway used up. A $20,000 replacement might only result in a $10,000 payout. After your deductible, the check could be even smaller.

This is why many homeowners face higher out-of-pocket costs, even when their claim is approved.

Roof Payment Schedules:

A roof payment schedule sets a fixed percentage payout based on your roof’s age.

• Under 5 years old: often covered at 100%
• Around 10 years old: coverage may drop to 40% or less
  

This approach is becoming more common in storm-prone states like Texas and often leaves homeowners with a big gap to cover themselves.

Policy Exclusions to Watch For:

Even with the best policy type, certain exclusions can prevent you from getting a payout. Cosmetic damage, such as dents in metal roofing that don’t affect performance, is often excluded.

Other common exclusions include:

• Normal wear and tear
• Gradual deterioration
• Pre-existing damage
• Issues from poor installation or lack of maintenance

These exclusions are among the top reasons claims get denied. Knowing them ahead of time helps homeowners maintain their roofs, keep good records, and avoid unpleasant surprises when filing a claim.

How to Protect Yourself:

The first step is to understand your current policy and know exactly how your roof is covered. 

• CURRENT COVERAGE: Review your policy terms to determine whether your roof is covered under RCV or ACV, and whether there’s a payment schedule that limits payouts based on roof age. Look for a list of exclusions so you know what’s not covered.
• CLEAR UP CONFUSION: Ask your agent for a written explanation for any language that is unclear.
• KEEP RECORDS: Keep detailed records of your roof’s condition, including inspection reports and repair receipts. This will help support your case in the event of a claim.
• EXPLORE YOUR OPTIONS: If your coverage is limited, you may want to explore upgrading your policy or investing in preventative roof improvements.