D2D glossary / Roofing terms
What do ACV and RCV mean in roofing sales?
ACV vs. RCV: ACV is actual cash value: what the damaged roof is worth today after depreciation. RCV is replacement cost value: what a new roof costs. The type of policy decides which one the insurer pays.
On a replacement cost policy, the insurer usually pays the actual cash value first, minus the deductible. The difference, called recoverable depreciation, is released after the work is finished and invoiced. On an actual cash value policy, that second payment never comes and the homeowner covers the gap.
Roofing reps read the adjuster's estimate for these two numbers at the kitchen table. Explaining them correctly, including that the deductible is the homeowner's to pay, is the difference between a customer who trusts the process and one who feels misled when the first check is smaller than the job.
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ACV vs. RCV: quick answers
What do ACV and RCV mean in roofing sales?
ACV is actual cash value: what the damaged roof is worth today after depreciation. RCV is replacement cost value: what a new roof costs. The type of policy decides which one the insurer pays.