Why Insurance Roof Claims Are Confusing

When a storm damages your roof and you file a claim, most homeowners expect one check that covers the job. What often happens is different: you get a check that covers only part of the cost, with a second payment available later — but only if you know to ask for it. That gap is the difference between Actual Cash Value (ACV) and Replacement Cost Value (RCV), and it's where a lot of NWA homeowners leave money on the table.

Actual Cash Value (ACV): The First Check

ACV is the depreciated value of what you're replacing. Your insurance company determines how old your roof is and applies a depreciation formula to reduce the payout accordingly. A 15-year-old roof that costs $14,000 to replace might carry only $7,000–$9,000 in ACV, depending on the carrier and the depreciation schedule. The first check you receive after a claim is typically the ACV minus your deductible. This is not the final settlement — it's the starting point.

Replacement Cost Value (RCV): The Full Amount

RCV is what it actually costs to replace your roof at today's material and labor prices — with no depreciation taken out. If your policy is an RCV policy (most homeowner policies are), you're entitled to collect the full replacement cost. But there's a catch: you only receive the RCV after the work is complete and you submit documentation. The difference between the ACV check and the full RCV is called the recoverable depreciation.

The Two-Check Process

Here's how it typically works: First, your adjuster inspects the damage and issues a scope of loss. You receive an ACV check. You hire a contractor, complete the work, and get a final invoice and photos. You (or your contractor) submit the completion documents to the insurance company. The carrier then releases the recoverable depreciation — the second check. On older roofs, this second payment can be $3,000–$6,000 or more. Skipping this step means leaving that money uncollected.

What Can Go Wrong

Several things can reduce your payout or complicate the process. Adjuster scopes sometimes miss line items — flashing, drip edge, pipe boots, and interior work are frequently omitted. Material prices rise over time and may have changed since the original estimate. Some carriers use proprietary pricing software (Xactimate) that prices below current market rates. And if the work isn't completed within a certain timeframe, some policies allow the carrier to deny the depreciation release. Knowing what's in your scope — and what should be in it — matters.

How True South Helps

We've worked through the insurance process with hundreds of NWA homeowners. We know what a proper scope looks like, what adjusters commonly miss, and how to document completion to get your depreciation released quickly. We can review your scope of loss before you sign anything and flag items that should be included. We work alongside your adjuster, not against your carrier — our job is to make sure the claim reflects the actual scope of work, nothing more and nothing less.

Questions to Ask Your Carrier

Before you start, confirm: Is my policy ACV or RCV? What is the depreciation holdback on my claim? What documentation do I need to submit to release recoverable depreciation? Is there a deadline to complete work and submit? What is my deductible? How does my carrier handle supplements if the contractor finds additional damage? Getting clear answers to these questions before the job starts prevents surprises at the end.

ACV vs RCV: A Homeowner's Guide to Roof Insurance Claims