The two settlement types
Replacement Cost Value (RCV) means the carrier pays what it costs to put a new roof on your house at today's prices. You pay your deductible; they pay the rest, usually in two checks.
Actual Cash Value (ACV) means the carrier pays replacement cost minus depreciation. A 15-year-old roof on a 25-year-rated shingle might be depreciated 60%. On a $25,000 roof that's a $10,000 check before your deductible comes out.
How recoverable depreciation works on an RCV policy
On an RCV claim your carrier issues an initial ACV check right away — replacement cost minus depreciation minus deductible. That is not the total settlement; it's a down payment.
Once the roof is actually replaced and we submit the final invoice and completion documentation, the carrier releases the withheld depreciation. That second check is why the paperwork at the end of a job matters as much as the work itself.
- Check 1 (ACV): issued at claim approval.
- Check 2 (recoverable depreciation): issued after completion documents are submitted.
- Supplements: issued if the adjuster's original scope missed items code requires.
The roof schedule trap
Several carriers writing in Colorado now attach a roof payment schedule endorsement: the roof is covered at RCV for the first several years, then steps down to a shrinking percentage of replacement cost. It is easy to miss because your declarations page still says replacement cost for the dwelling.
Read the endorsement list on your declarations page and look for anything with 'roof', 'windstorm/hail deductible', or 'cosmetic damage' in the title. Those three endorsements decide most of what you'll be paid.
What to do before the next storm
Pull your declarations page today, before you need it. Confirm the roof is on RCV, note your wind/hail deductible (often a percentage of dwelling value, not a flat $1,000), and check for a cosmetic damage exclusion. If you're on ACV and your roof is under 15 years old, ask your agent what it costs to move back to RCV — it's frequently a small premium change.