What’s the difference between Replacement Cost Value (RCV) and Actual Cash Value (ACV)?
Your home and most of its contents and components are valued in two different ways depending on your insurance policy. Replacement Cost Value (RCV) is the most common coverage. It’s the actual cost to replace the item at its pre-loss condition. Actual Cash Value (ACV), another coverage, is what the item is worth in the condition it’s currently in. The difference between those values is depreciation.
Roofs depreciate 5% per year on average after the date of purchase.
If you have ACV coverage, a non-recoverable depreciation policy, your insurance company will pay the actual cash value of the loss. The depreciation will not be reimbursed.
Most companies pay you part of the RCV first. You must complete the repairs to your roof per scope and price of your insurance policy to get the insurance company to send you your depreciation reimbursement. For example, replacing the roof and submitting all proof and documentation such as your signed contract and final invoice.
Wilson Roofing is a preferred contractor with almost all of the major insurance carriers. We’re often called out to act as the adjuster on behalf of these carriers through our partnership with Contractor Connection. Additionally, we’re proud to be one of Nationwide’s “Everyday Roofers,” who they rely on to work closely with to get their policy holder’s the new roofs and repairs they need.
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