RCV
Replacement Cost Value
The full cost to replace the damaged roof today with materials of like kind and quality, at current prices for labor and materials. This is the big number at the top of the estimate.
The short answer
Your estimate shows what it costs to put a new roof on today. Your first check is based on what your old roof was worth the day the storm hit.
The difference is depreciation. On a replacement cost policy, you usually get that money back once the roof is replaced and your insurance company receives the final invoice. Your deductible is the one piece that stays your share.
Three terms on your estimate
RCV, depreciation and ACV
DEP
Depreciation
The value the roof lost to age and wear before the storm. Adjusters figure it from the roof's age, condition and expected life. On a replacement cost policy it is usually listed as recoverable, meaning you can collect it later.
ACV
Actual Cash Value
What the roof was worth at the time of loss: the replacement cost minus depreciation. Most carriers pay this amount first, less your deductible.
RCV−Depreciation=ACV
−Deductible=First check
Example claim
Where the $24,000 comes from
Say the storm totals a 12-year-old shingle roof and the carrier writes it at $24,000 to replace. The adjuster applies 30% depreciation for age and wear. You have a $2,000 deductible.
You get $14,800 now. After the new roof is installed and the final invoice goes in, the carrier releases the $7,200 it held back. Your $2,000 deductible is the rest, and you pay it. Together, that adds up to the $24,000 in this example.
Numbers are an example. Your depreciation rate, deductible and policy terms will differ. Results vary; no claim outcome is guaranteed.
How it works and how long it takes
From storm to final check
Timing depends on your carrier, your state and how fast paperwork moves. These are typical ranges, not promises.
Claim filed and roof inspected
You report the claim. The carrier's adjuster inspects the roof and writes an estimate with RCV, depreciation and ACV.
Days to a few weeksafter you fileFirst check: ACV minus deductible
Once the claim is approved, the carrier pays the actual cash value less your deductible. If you have a mortgage, your lender's name may be on the check too.
Usually within weeksof approval; many states set prompt-pay deadlinesYour new roof is built
Materials are ordered and the roof is installed. If hidden damage turns up during tear-off, it is documented with photos so the estimate can be updated.
Often 1–3 dayson the roof, after schedulingFinal invoice sent to the carrier
The carrier needs proof the work is done: a final invoice, and often completion photos or a certificate of completion.
Right afterthe job is finishedSecond check: recoverable depreciation
The carrier reviews the invoice and releases the depreciation it held back, plus any approved additions to the estimate.
Commonly 2–4 weeksafter the carrier gets the invoice
Watch your deadline
Policies set a time limit to finish the work and claim your depreciation. It is often 180 days, and some policies or states allow a year or two from the date of loss. Look for "Loss Settlement" or "Replacement Cost" in your policy. If you need more time, ask your carrier for an extension in writing before the deadline passes.
Other things that change the check
Still looks low?
Your deductible
It comes out of the first check, and it stays your share. Many policies in hail states use a percentage deductible, such as 1% or 2% of your dwelling coverage, which can be larger than people expect. In Texas it is illegal for a roofer to waive or pay your deductible.
An ACV-only roof policy
Some policies pay the roof only at actual cash value, often through a roof schedule or endorsement for older roofs. In that case the depreciation is non-recoverable and there is no second check. Your declarations page will say.
Items left off the estimate
Estimates sometimes miss items such as drip edge, ventilation, extra layers or code-required work. When those are documented, the carrier can review and add them. Approved additions are usually paid with the final check.
Your mortgage company
If your lender is named on the policy, it is often named on the check. Some lenders hold the money and release it in stages as work is completed. Call your lender's loss draft department early to learn their process.
Talk to our team
Have a question about your estimate?
Send us your question and we'll walk you through your estimate, show you how the payments line up with your roof, and inspect your roof for free if you need a second look. We document storm damage thoroughly so the facts are clear to anyone who asks.
(865) 355-4307
info@skyviewrestore.com