ACV & RCV in Property Damage Insurance Coverage

Actual Cash Value (ACV) and Replacement Cost Value (RCV) are different types of insurance coverage. The coverage you have under your homeowners insurance policy will determine how much money you get from your insurer for your property damage claim.

Differences in Property Damage Coverage

ACV vs. RCV in Terms of Coverage for Roof Damage Insurance Claims

Actual Cash Value, or ACV, is an insurance term that refers to what a covered item is currently worth, in its present state. This is not to be confused with what the item cost the insured when it was acquired. Insurance companies calculate this difference by taking into account the depreciation of the item.

For example, a brand new roof might have cost a homeowner $20,000 ten years ago when the home was insured. If the expected lifespan of the roof is twenty years, then the homeowner can expect an insurance company to deem the current Actual Cash Value of an undamaged ten year-old roof to be $10,000.

According to the International Risk Management Institute, ACV is determined by taking the physical depreciation (wear and tear from use) and subtracting it from the replacement cost of the insured property.

Replacement Cost Value, on the other hand, is 100% of the cost of replacing the damaged property with materials of "like kind and quality". RCV insurance coverage generally costs about 10%-25% more, but provides homeowners with much better coverage for property damage. In the example used above, a homeowner with a damaged 10 year-old roof would have the total cost of a full roof replacement paid for by insurance.

ACV and RVC for roof damage like this will mean different coverage for an insurance claim
Insurance claims handling, preparation, appraisal, negotiation and settlement services in PA & MD by licensed public adjusters.


Choosing Your Insurance Policy

Insurance coverage can vary from policy to policy and its important to check yours thoroughly and make sure you know how your property is protected. For example, many policies provide replacement cost coverage for the structure of the home, but the contents of the home may have ACV coverage. Additionally, many insurance companies will limit coverage of older properties to ACV.

Replacement Cost Value undoubtedly provides more coverage than Actual Cash Value but it also costs more. For this reason, homeowners are tempted to choose ACV coverage in an effort to save some money. We have worked with homeowners who come to regret this decision. Our public adjusters often work on behalf of homeowners who get very little money for roof damage insurance claims compared to others. Here's what our owner Eric has to say...

"In my extensive experience working with insured owners to restore their property damage, homeowners with RCV coverage get damage repaired completely and their insurance almost always pays for everything except their deductible. On the other hand, my customers with ACV coverage have to settle for a check for the value of the damaged property minus the depreciation (for age, use, damage, etc). And they often have to pay the difference to the contractor."

- Eric Hare, Owner - Chateau Public Adjusters & Superior Services of PA & MD

Getting Help with Your Property Damage Insurance Claim

Don't go it alone. Protecting your property is important to you and having proper insurance coverage can provide peace of mind that money can't buy. Unfortunately insurance companies have a profit motive to provide coverage that pays out the least amount of money possible. Public Adjusters, on the other hand, have a profit motive to help you get the most amount of money for your roof or other property damage claim. The more you get from your insurer, the more we make - and if you don't get anything from your insurance company then we don't get paid! Call us today for a free consultation.

Learn More About Public Adjusters and how we Can Help with ACV & RCV, Property Damage Claims, Etc...

What is a Public Adjuster?

A Public Adjuster is the only party other than the insured that is legally allowed to represent the interests of the insured (you, the property owner). Our training, certification and licensing allows us to negotiate claims settlements with the insurance company and the insurance company's adjuster. Restorations contractors are not legally allowed to handle insurance claims negotiations or assistance in Pennsylvania or Maryland. Only public adjusters are allowed to do so, and at Chateau we use our extensive training to stop insurance companies from victimizing property owners by only approving the bare minimum, cheapest repairs possible. With a public adjuster on the claim, insurance companies are held responsible.

Why Do I Need a Public Adjuster?
How Much Does it Cost?

Public Adjuster License Look-Ups and Other Important Links

Our Service Area

We serve the entire south-central Pennsylvania and Northern Maryland areas including all towns and zip codes in the following counties:

  • Cumberland, Lancaster, York & Adams Counties in Pennsylvania
  • Frederick, Baltimore & Carroll Counties in Maryland

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