ACV vs. Replacement Cost: Which Roof Insurance Policy Do You Have?

The Core Difference

When your roof is damaged in a storm, your insurance payout depends entirely on which type of coverage you have:

A Real-World Example

Your 12-year-old roof has a 25-year expected lifespan. A hurricane causes $20,000 in damage. Your deductible is $2,000.

How to Find Out Which You Have

Pull out your declarations page — the first 1–2 pages of your policy. Look for language like "Roof Surfacing — ACV" or "Limited Roof Coverage." If you see either of those, you likely have ACV coverage on your roof. When in doubt, call your agent directly and ask: "Do I have replacement cost or actual cash value coverage on my roof?"

The 10-Year Rule

Many Florida insurers automatically switch roofs older than 10 years from RCV to ACV coverage. Some won't even insure roofs older than 15 years. This is increasingly common after years of hurricane losses — and it's legal. Check your policy annually as your roof ages.

Hurricane/Wind Deductibles Make It Worse

In coastal states, most policies have a separate hurricane or named-storm deductible — typically 2–5% of your dwelling coverage value, not a flat dollar amount. On a $400,000 home, a 2% wind deductible means you pay the first $8,000 of any hurricane claim before insurance contributes anything. Combined with ACV depreciation, this can leave you responsible for the majority of a storm repair.

What to Do If You Have ACV Coverage

• Contact your agent about upgrading to RCV — it typically costs 10–20% more in premium but protects you dramatically better
• If your roof is nearing the 10-year mark, get it inspected and address any maintenance issues before your insurer reclassifies it
• Consider replacing an aging roof proactively — a new roof qualifies for better coverage and often reduces your premium