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The Difference Between Roof Replacement and ACV Policies

Roof Replacement Cost Policies VS ACV Policies

Your roof is one of the more essential parts of your home. It’s your shield against the weather and it helps keep your house warm in the winter and cool in the summer. If something goes wrong with your roof you’ll want to fix it as quickly as possible. Typically, that’s where your insurance would come in. However, the price of your new roof may change depending on your insurance policy. There are usually two different options when it comes to roofing insurance: roof replacement and ACV policies. But what’s the difference between roof replacement and ACV policies? Hennessey Roofing has the answer!

Understanding Replacement Cost Policies

Roof replacement cost policies in Colorado Springs, or RCV, will cover the cost of the replacement of your roof. Your claims adjuster will look at roofing materials similar to what you currently have on your roof and settle on a price that should be able to get you an entirely new roof. While this won’t cover a major upgrade, like transitioning from asphalt shingles to metal roofing, it will be the cheapest way to replace your roof. However, RCV insurance policies are the most expensive insurance options on the market. In addition, some insurance companies will phase out the RCV policy after the roof gets a certain age, turning the policy into an ACV policy.

Replacement Cost Value (RCV) policies are designed to cover the full cost of replacing your roof. Your insurance will estimate the cost based on similar roofing materials to what you currently have, ensuring you can get a new roof without an upgrade in materials.

Points to Consider

  • RCV policies tend to be pricier.
  • They might convert to ACV policies as your roof ages.

Actual Cash Value (ACV) Policies

An ACV roofing policy, also known as an actual cash value policy, is much different than an RCV policy. Instead of agreeing to replace your roof, an ACV policy is your insurance agreeing to pay you for the value of your roof in its current state. The claims adjuster will inspect the roof and see how much the roof was worth, and then give you money for that value. That usually won’t be enough for a new roof, unfortunately. Although, ACV policies are generally cheaper than RCV policies. In addition, ACV policies are common for older roofing.

How They Work

ACV policies differ significantly from RCV. Rather than covering the cost of a replacement, these policies pay out the current value of your roof. This means the payout is based on the roof’s condition at the time of the claim, which might not cover the full cost of a new roof.

Key Factors

  • ACV policies are generally more affordable than RCV.
  • They are a common choice for older roofs.

Making the Right Choice for Your Roof

Deciding between RCV and ACV policies depends on several factors:

1. Age of Your Roof:

If you have a newer roof, an RCV policy could offer better coverage.

2. Budget Constraints:

ACV policies are more budget-friendly, albeit with less comprehensive coverage.

3. Insurance Company Policies:

Be aware that insurance companies may switch your policy from RCV to ACV as your roof ages.

What’s Better for My Roof?

If you have a new roof and want the best coverage then getting a replacement cost policy is a good plan. However, keep in mind that most insurance companies will switch you over to an actual cash-value policy after a set period of time. Actual cash value policies don’t pay for your whole roof if there’s a problem, but you get as much as your roof is worth. It’s also one of the cheapest options. The right policy for you is the one that fits your budget and what you want out of your insurance policy.


The difference between RCV and ACV policies is how much you get from your insurance company if your roof breaks. If you need assistance preparing your roof or need an entirely new roof, contact us. We believe that a Colorado Springs roofing company should offer a professional and stress-free service. Hennessey Roofing is an expert at inspecting and installing roofing and will start right away. We have intimate knowledge of all the permits required for roofing projects. Call us today to schedule your free estimate or fill out our contact form and we’ll be in contact shortly!