ACV vs RCV, Decoded

Actual cash value (ACV) pays the replacement cost minus depreciation, which can be substantial on an older roof. Replacement cost value (RCV) pays the full replacement cost, with the depreciated portion typically withheld until the work is complete — that is the recoverable depreciation.

For a major loss like roof replacement, RCV is almost always better because it pays to rebuild the roof rather than its depreciated value. The tradeoff is that on many RCV policies you front the full bill and recover the depreciation after completion, so you need a plan for the cash-flow gap.

On an RCV policy, the insurer subtracts depreciation from the initial payment, then releases it after the roof is replaced and documented. The portion released after completion is called recoverable depreciation. If the roof is never replaced, that portion is usually not paid.

Common reasons: the claim was written on an ACV basis, the depreciated holdback has not been released yet, the deductible applies, or the approved scope missed legitimate line items like flashing, ventilation, or code upgrades. A scope review can catch missed items and support a supplement.

Yes. Fullstack coordinates scope reviews and documentation across Utah with an independent licensed and insured contractor who can help you confirm the approved scope matches what your roof actually needs before you pay for the work.