After a storm, most SW Missouri homeowners assume their insurance covers a new roof. Whether it does, and how much, depends on one thing they rarely check before filing: ACV vs. RCV. This article explains the difference, shows how to find your policy type, and walks you through collecting every dollar you are owed.
TLDR: ACV pays replacement cost minus depreciation, so older roofs get significantly less. RCV pays the full replacement cost, but in two checks. You have to complete the work and submit the invoice to collect the second one. Every SW Missouri homeowner should pull their declarations page today and look for those three letters before the next storm hits.
The storm came through. The claim was filed. The check arrived. And it is not what you expected.
Your neighbor down the street had the same storm and the same damage. Their insurance covered a new roof. Yours covered a fraction of one. Same street, same storm, very different outcome. The difference is one detail buried in your policy you probably never looked at: ACV vs. RCV.
This situation is common in SW Missouri and entirely preventable, but only if you know what to look for before you file.
What ACV and RCV Actually Mean
The whole topic comes down to two short acronyms.
ACV, Actual Cash Value
ACV pays the current value of your roof, not what it costs to replace. The insurance company calculates what your roof is worth today based on age and lifespan. The older the roof, the smaller the payout. You cover the gap out of pocket.
RCV, Replacement Cost Value
RCV pays the full cost to replace your roof with new materials of similar type and quality. Roof age does not reduce the total payout. It does not all come at once though. RCV uses a two-check system explained later.
| ACV (Actual Cash Value) | RCV (Replacement Cost Value) | |
|---|---|---|
| What it pays | Current value of roof after depreciation | Full cost to replace with new materials |
| Effect of roof age | Major. Older roof = much lower payout | None. Age does not reduce payout |
| Out-of-pocket gap | Often significant on roofs 10+ years old | Only your deductible |
| How payment works | One check after claim approval | Two checks: initial ACV plus depreciation release after completion |
| Who has it | Older homes, older policies, roofs 10+ years (some insurers auto-switch) | Newer roofs, updated policies |
| Typical premium cost | Lower monthly premium | Higher monthly premium |
The difference sounds simple until you are holding a check that does not cover the job. That is when policy type stops being a detail and becomes the most important thing on the page.
How Depreciation Works and Why Your Roof’s Age Is the Biggest Variable
Depreciation is the reduction in your roof’s value over time based on age and lifespan. Under an ACV policy, the insurer applies a depreciation schedule to calculate your payout.
| Approximate Roof Age | Typical Coverage Under ACV | What That Means |
|---|---|---|
| New (0 to 2 years) | 95% to 100% of replacement cost | Near full coverage |
| 5 years old | About 75% to 90% | Modest out-of-pocket gap |
| 10 years old | About 50% to 70% | Substantial shortfall |
| 15 years old | About 25% to 55% | Coverage covers less than half |
| 20+ years old | Sometimes only 20% to 40% | Most of the cost falls on the homeowner |
Your specific schedule is in your policy documents. Standard asphalt shingles are commonly given a 20 to 25 year lifespan. The Missouri Department of Commerce and Insurance has flagged that ACV policies for older roofs can leave homeowners receiving only a fraction of what replacement requires.
Pro Tip: Look at the roof age listed on your insurance policy or recent inspection report. If your roof is 10 or more years old and you have not reviewed your policy type recently, pull your declarations page today. Some insurers have quietly added ACV endorsements when roofs cross an age threshold.
How to Find Out Which Policy You Have Right Now
You do not need to wait for a claim. It takes about five minutes.
The Declarations Page, Where to Look
The declarations page (the “dec page”) is the 1 to 2 page summary at the front of your policy documents. Find it in your email, your online portal, or call your agent. Under Coverage A (Dwelling), look for “Replacement Cost” or “Actual Cash Value.” Some policies list it as an endorsement with “Roof Settlement” language.
What to Look For Specifically
Three things to find:
- Is Coverage A listed as Replacement Cost or Actual Cash Value?
- Is there a separate roof endorsement that limits coverage differently?
- Is there a wind and hail deductible separate from your standard one? Many Missouri policies list it as a percentage of dwelling value, which can be much larger than expected.
The Missouri DCI Free Tool
The Missouri Department of Commerce and Insurance built a free tool comparing the top 20 home insurers on ACV vs. RCV. The Missouri DCI consumer page provides a comparison form for insurers not on the list, plus a consumer helpline at 800-726-7390. The NAIC ACV vs. RCV explainer provides additional context from the national insurance regulatory body.
Pro Tip: When you call your agent, ask two specific questions: “Is my roof covered at replacement cost or actual cash value?” and “Is there a separate wind or hail deductible?” Get the answers in writing.
The Two-Check System: How RCV Policies Actually Pay
If you have an RCV policy, that is good news. Understand that you will not receive the full replacement amount in one check.
Check One, the ACV Payment
After the claim is approved and the scope is finalized, the carrier sends the first check. This is the Actual Cash Value: full replacement cost minus depreciation held back, minus your deductible. Even RCV policyholders receive an ACV payment first.
The Depreciation Holdback, Recoverable Depreciation
The carrier holds back the depreciation amount until the work is done and documented. This held-back amount is “recoverable depreciation,” the difference between the full approved scope and the initial ACV payment.
Check Two, Releasing the Recoverable Depreciation
After the roof is replaced, submit the final invoice, completion photos, and any permit documentation to your insurer. Most carriers release the second check within 2 to 3 weeks. Our insurance claim assistance service includes packaging this submission, so you do not navigate it alone.
| RCV Payment Step | When It Happens | What to Submit |
|---|---|---|
| Initial ACV payment | After claim approval and scope finalization | Nothing, insurer initiates |
| Recoverable depreciation release | After work is fully completed | Final contractor invoice, completion photos, permit documentation |
| Final settlement | After carrier reviews submission | Confirm receipt with carrier in writing |
Do not skip the second submission. That recoverable depreciation is money you are owed.
Pro Tip: Track the date you submit your completion documentation. If you do not receive the recoverable depreciation check within 3 to 4 weeks, follow up in writing. Keep timestamps on every submission.
What If You Have an ACV Policy: What Are Your Options?
Having an ACV policy does not leave you without options.
- File promptly. The longer you wait, the lower the ACV calculation goes.
- Review upgrade options before next storm season. Some insurers offer an endorsement to convert ACV to RCV for a modest premium increase.
- Ask about Class 4 impact-resistant Owens Corning shingles at replacement. Some Missouri carriers offer premium discounts for Class 4.
- Plan for the gap. Discuss the difference between payout and full replacement with your contractor before work begins.
- Do not let the gap discourage you from filing. Partial payment is still meaningful coverage.
Illustrative scenario: A homeowner in Bolivar filed a hail claim last spring and received a first check substantially smaller than expected. She had assumed her policy was full replacement cost. When she pulled the dec page, dwelling coverage was at Replacement Cost, but a separate roof endorsement had moved her 15-year-old roof to ACV at her last renewal. She called us for a free roof inspection. Our team walked her through the gap, recommended Class 4 Owens Corning shingles, and helped her plan around the available claim funds. We completed the roof replacement in two days and submitted the documentation package.
Pro Tip: If you are considering a roof replacement in the next 1 to 2 years, ask your insurer whether upgrading to Class 4 impact-resistant shingles would affect your policy or premium at renewal. Some Missouri carriers treat Class 4 roofs more favorably.
Pro Tip: When you pull your declarations page, save a copy on your phone or in cloud storage. After a storm is the worst time to start hunting for paperwork.
SW Missouri Context: Why This Matters More Here
SW Missouri’s storm frequency means many homes in Springfield, Monett, Aurora, and surrounding communities have filed multiple claims over a 10 to 20 year span. Repeated claims plus roof age accelerate how quickly an insurer moves a roof to ACV coverage. Older housing stock means many homes carry roofs already in the 10 to 20 year range, where the depreciation schedule does the most damage. The Missouri DCI has flagged roof insurance as a consumer awareness priority, and NWS Springfield data confirms regular hail and wind events year over year. Knowing your policy type before storm season is the most valuable step you can take.
Frequently Asked Questions
What is the difference between ACV and RCV roof insurance?
ACV pays the depreciated value at time of loss (older roofs get less). RCV pays the full replacement cost in two parts: ACV first, then recoverable depreciation after the work is complete.
How do I know if I have an ACV or RCV policy?
Look at the dec page, the 1 to 2 page summary at the front of your policy. Under Coverage A, look for “Replacement Cost” or “Actual Cash Value,” plus any roof endorsement.
My insurance sent me a check but it is not enough to cover the full replacement. Why?
If your policy is ACV, the check is your full settlement minus deductible. If RCV, the check is the ACV portion only and the carrier holds the depreciation until work is complete.
What is recoverable depreciation and how do I collect it?
It is the difference between the initial ACV payment and the full approved replacement cost on an RCV policy. Complete the work, then submit the final invoice, photos, and permits to your insurer.
Does roof age really affect how much insurance pays?
On ACV policies, roof age is the biggest variable. A 10-year-old roof on a 20-year schedule is considered 50% depreciated. RCV policies do not reduce the total payout based on age.
Can I switch from ACV to RCV coverage?
Sometimes. Many insurers offer an endorsement to upgrade for a modest premium increase, especially with Class 4 impact-resistant shingles. Ask your agent at renewal.
What is a wind and hail deductible and is it different from my regular deductible?
Many Missouri policies apply a separate wind/hail deductible calculated as a percentage of dwelling value (often 1% to 5%) rather than a flat amount. Confirm the figure on your dec page.
What documents do I need to submit to get my second check?
The final contractor invoice, completion photos, and any permit documentation, sent directly to your carrier’s claims department with your claim number on each item.
Does installing Class 4 shingles affect my insurance coverage or premiums?
Class 4 impact-resistant shingles can qualify for premium discounts with some Missouri insurers and may help maintain RCV eligibility at renewal. We are an Owens Corning Platinum Preferred Contractor, held by less than 1% of roofers nationally.
How can Teague Roofing Plus help me if I have an ACV policy?
We provide a free inspection, document the damage, and help you understand the gap between insurance payout and actual replacement cost. We can also walk you through Class 4 options for better policy treatment at renewal.
Key Takeaways
- The Core Difference: ACV pays depreciated value; RCV pays full replacement cost.
- Depreciation and Roof Age: ACV payouts drop sharply with age. A 10-year-old roof is roughly 50% depreciated. By 20+ years, payout can fall below half of replacement cost.
- How to Find Your Policy Type: Read the dec page under Coverage A. Look for “Replacement Cost” or “Actual Cash Value” plus any roof endorsement.
- The Two-Check System: RCV pays ACV first, then recoverable depreciation after work is complete.
- ACV Policies, What to Know: File promptly, ask about RCV upgrade endorsements at renewal, and consider Class 4 shingles.
- The Missouri DCI Tool: Free comparison tool plus consumer helpline at 800-726-7390.
- Where Teague Fits In: Free inspection, damage documentation, on-site adjuster support, and full handling of recoverable depreciation. No extra charge.
Want a Free Inspection and a Real Conversation About Your Coverage?
You now understand the concept that determines what you actually receive after a storm. The next step is a free inspection from a team that handles these conversations every day.
Teague Roofing Plus has worked through ACV and RCV claims with SW Missouri homeowners for over 50 years.
What comes with calling us:
- Free roof inspection and written damage report, no pressure, no obligation
- Full insurance claim assistance at no extra charge, including help collecting your recoverable depreciation
- Owens Corning Platinum Preferred Contractor (less than 1% of roofers nationally), with access to Class 4 shingles
- Local crew you can reach by name, with project managers running every job
- 5,000+ roofs completed in SW Missouri since 1971
- All permits handled
Owner Josh Tessmer runs Teague Roofing Plus on the principles Kenneth Teague founded the company on in 1971: do honest work and stand behind it.
Call 417-883-7663 or contact us online.
Teague Roofing Plus | Roofing, Siding, Windows, Gutters, and More. Serving Southwest Missouri Since 1971.
