Insurance policy structures are evolving as carriers adjust to rising material costs and frequent storm activity in Texas. It is becoming increasingly common for older policies to transition from Replacement Cost Value (RCV) to Actual Cash Value (ACV) for roofs over a certain age.
An RCV policy generally covers the full cost of replacing your roof, minus your deductible, by releasing withheld depreciation once the work is completed. In contrast, an ACV policy only pays for the current depreciated value of the roof, which can leave the homeowner responsible for a large portion of the bill.
Checking Your Policy Declarations
We advise all clients to review their 'Schedule of Insurance' or 'Roof Surface Endorsement' sections. Some carriers have introduced 'depreciation schedules' that automatically reduce coverage percentages as the roof ages beyond the 10-year mark.
Knowing your coverage type before a storm hits is essential for financial planning. If you are currently on an ACV-only plan, you may want to discuss an endorsement upgrade with your agent to ensure you are protected against the full cost of a total loss.