Understanding Replacement Cost vs Actual Cash Value
Detailed explanation of RCV vs ACV insurance policies and how they affect your roof claim settlement.
Understanding your policy type is essential for knowing what to expect from insurance claims.
## Replacement Cost Value (RCV) Policies
RCV policies pay the full cost to replace your roof with materials of like kind and quality, minus your deductible. This is the most common and beneficial policy type for Georgia homeowners. When your claim is approved, you receive an initial payment (actual cash value) and a second payment (recoverable depreciation) after repairs are completed.
## Actual Cash Value (ACV) Policies
ACV policies pay replacement cost minus depreciation for age and wear. A 15-year-old roof might receive only 50-60% of replacement cost. While ACV policies have lower premiums, they provide significantly less protection. Most Georgia homeowners have RCV policies, but it's essential to verify your coverage.
## How Depreciation Works
Insurance companies calculate depreciation based on roof age and expected lifespan. Asphalt shingles typically depreciate over 20-25 years. A 10-year-old roof might be depreciated 40-50%. With RCV policies, you recover this depreciation after completing repairs. With ACV policies, you never recover it.
## Maximizing Your Benefits
Capital City Roofing helps homeowners understand their policy type and maximize benefits. We coordinate with insurance companies to ensure proper valuation and complete depreciation recovery. Our expertise ensures you receive every dollar you're entitled to under your policy. Learn more at our [insurance claims page](/how-roof-insurance-claims-work).
