RCV vs. ACV: What Kind of Roof Insurance Coverage Do You Actually Have?
When a storm hits your Oklahoma home, your first concern is safety. Your second is probably, Will my insurance cover this? But here’s where most homeowners get blindsided: the difference between RCV and ACV coverage.
It’s a small detail in your policy—but it has a massive impact on your wallet when it’s time to repair or replace your roof.
At Tier-One Roofing, we’ve reviewed hundreds of insurance policies with our clients. And we’ve seen the same story too many times: a homeowner assumes they’re covered for full replacement, only to find out they’re not. We believe in preventing that shock before it happens.
This article breaks it all down for you—RCV, ACV, what the terms mean, how they impact your claim, and how to prepare before the next storm rolls in.
What Do RCV and ACV Stand For?
Let’s start with the basics:
RCV stands for Replacement Cost Value
ACV stands for Actual Cash Value
These are the two primary types of insurance coverage for roofs in Oklahoma. And while they sound similar, they mean very different things when you need to file a claim.
What is RCV (Replacement Cost Value)?
RCV coverage means your insurance company agrees to pay the full cost to replace your roof with new materials, minus your deductible. There’s no deduction for depreciation.
Let’s say your roof costs $15,000 to replace. If your deductible is $2,000, your insurance company pays $13,000—you pay $2,000. Simple.
RCV policies are more homeowner-friendly and give you the best protection. But they’re also less common on older roofs or in policies that haven’t been updated in years.
RCV gives you:
Full payout based on current material and labor prices
Better return on your monthly premiums
Peace of mind knowing you won’t be stuck with a half-paid claim
At Tier-One Roofing, we always review your policy with you before moving forward with work. We don’t let you walk into a claim blind.
Call us at (918) 393-4682 and we’ll walk through your coverage at no cost.
What is ACV (Actual Cash Value)?
ACV coverage is very different. Instead of paying to replace your roof, your insurer pays what your roof is worth today, factoring in age and depreciation.
Here’s how that plays out:
Let’s say your roof is 15 years old. The insurance company determines it has 5 years of useful life left. If replacement costs $15,000, but they say your roof is now only worth $4,000, you get $4,000—minus your deductible.
In other words, you may be left paying 60–80% of the bill out of pocket.
We’ve seen homeowners in Broken Arrow, Jenks, and Bixby file claims expecting full coverage—only to find out they were working with ACV and owed more than $10,000 unexpectedly.
Don’t let that be you. Know what kind of policy you have now, not later.
How to Find Out What Coverage You Have
You can usually find your coverage type in the declarations page of your homeowners insurance policy. Look for a line item that says:
Roof coverage: Replacement Cost
Roof coverage: Actual Cash Value
If you’re unsure, call your agent—or call us. Tier-One Roofing can help interpret your policy language and make sure you understand what you’re working with.
We’ve read enough of these to know the red flags.
Which Coverage Do Most Homeowners Have in Oklahoma?
Here’s the trend we’re seeing:
Newer homes (under 10 years) often still have RCV coverage
Older homes (15+ years) may default to ACV unless upgraded
Policy renewals may sneak in ACV without warning to lower premiums
Some insurers offer RCV with a caveat—they’ll pay ACV up front, then reimburse the rest (the depreciation) after the work is done and invoices are submitted. This is sometimes called Recoverable Depreciation.
It’s confusing. We get it. But it matters—a lot.
If your roof is damaged and you didn’t know your coverage type, it could cost you more than just your deductible.
Pros and Cons: RCV vs. ACV
Feature | RCV | ACV |
Full Replacement Coverage | ✅ | ❌ |
Deduction for Depreciation | ❌ | ✅ |
Higher Monthly Premium | ✅ | ❌ |
Lower Out-of-Pocket After Storm | ✅ | ❌ |
Risk of Underpayment | ❌ | ✅ |
Best for Older Roofs | ❌ | ✅ (but limited payout) |
Bottom line: RCV costs a bit more per month—but when you need it, it pays off big.
If you’re paying for insurance, make sure it’s the kind that actually protects you.
What If I Have ACV But Need a Full Roof Replacement?
It’s not the end of the world—but you need a plan.
Tier-One Roofing can help you:
Maximize your claim (with full documentation and supplements)
Submit accurate market-rate estimates to push the payout higher
Explore financing for any gap in your claim
We also offer staged replacement plans for homeowners who want to upgrade over time.
But if you haven’t had a storm yet, this is the time to talk to your insurance agent and switch to RCV—especially before renewal.
The Claims Process (and How RCV/ACV Affects It)
When you file a claim, here’s how your coverage impacts every step:
1. The Adjuster Inspection
With RCV: They document damage to determine full replacement cost
With ACV: They’ll still document damage, but depreciate it heavily
2. The Initial Payout
RCV: You may get a partial payout first, with the rest after work is complete
ACV: You’ll get only the depreciated amount, minus deductible
3. After the Work Is Done
RCV: You submit proof of completion and get your depreciation reimbursed
ACV: There is no reimbursement. What you got is all you’ll get.
Tier-One Roofing helps manage this entire process. We meet with adjusters, provide documentation, and make sure you get the most from your policy—whatever it is.
Call us at (918) 393-4682 to start your claim the right way.
FAQs
Q: Can I switch from ACV to RCV coverage?
Yes. Contact your agent and ask for a quote. It may raise your premium, but you’ll be much better protected.
Q: If I have ACV, is it still worth filing a claim?
Sometimes, yes. We’ll inspect your roof and help you run the numbers. It depends on age, damage, and repair costs.
Q: What if my insurer only offers ACV due to my roof’s age?
You may need to budget for replacement—or explore carriers who still offer RCV for older roofs with good condition.
Q: How do I know if the depreciation is fair?
We’ll review your insurance estimate and compare it to real market data. Many times, depreciation is overstated.
Q: Does Tier-One Roofing work with all insurers?
Yes. We’re independent, and we work with every major carrier in Oklahoma.
Final Word: Know What You’re Covered For—Before the Storm Hits
The best time to understand your roof coverage isn’t when water is dripping through your ceiling. It’s now.
RCV and ACV may seem like alphabet soup, but they represent a major fork in the road when disaster strikes. One leads to full protection. The other might leave you thousands short.
At Tier-One Roofing, we help you understand what you have, what you need, and what to do if your roof takes a hit.
We’re not just roofers. We’re educators, advocates, and neighbors. And we’ll fight to make sure you get what you’re owed.
Call (918) 393-4682 today or visit tier-oneroofing.com to schedule your free policy review and roof inspection.
When the storm comes, we want you to face it with confidence—not confusion.