The short answer
RCV pays the full current cost to replace your roof, usually in two payments. ACV pays replacement cost minus depreciation, which on an older roof can leave most of the bill with you. You want RCV. Many Texas carriers now move older roofs to ACV at renewal.
Side by side
| ACV (Actual Cash Value) | RCV (Replacement Cost Value) | |
|---|---|---|
| What it pays | Replacement cost minus depreciation | Full replacement cost |
| On a 15 year old roof | Can be a fraction of the cost | Full cost |
| Number of payments | One | Two |
| Your out of pocket | Deductible plus the depreciation gap | Deductible only |
| Premium | Lower | Higher |
| Common on | Older roofs, some newer Texas policies | Newer roofs, better policies |
Choose ACV (Actual Cash Value) if
- You have a very new roof and want the lowest premium
- You have no other option because carriers will not write RCV on your roof age
- You could genuinely absorb the depreciation gap out of pocket
Choose RCV (Replacement Cost Value) if
- You want a storm claim to cost you only the deductible
- Your roof is more than a few years old
- You live in an active hail corridor, which includes most of the Hill Country
- You would struggle to find $15,000 at short notice
What this looks like in the Hill Country
This matters more here than in most of the country. Kendall, Comal, Kerr and northern Bexar counties take damaging hail every few years, so the probability of actually using roof coverage is high. Texas carriers have responded by moving older roofs to ACV, often at renewal and without much fanfare. Check your declarations page before you need it.
