The two most important numbers on every insurance estimate — and how understanding them helps you protect your clients and close more jobs.
Actual Cash Value
The depreciated value of the roof. This is the first check from the insurer — what the roof is worth today, accounting for age and wear. ACV = RCV − Depreciation.
Replacement Cost Value
The full cost to replace the roof at today's prices. RCV policies pay the ACV first, then release the recoverable depreciation after the work is completed and invoiced.
Insurance adjusters apply depreciation based on the roof's age, material type, and condition. A 15-year-old 3-tab shingle roof will have far more depreciation held back than a 3-year-old architectural shingle roof. Here's a real-world example:
Some homeowners have ACV-only policies — they will never receive depreciation. This is common with older homes or budget insurance policies. As a contractor, you need to know whether the homeowner has RCV or ACV coverage before quoting the job. ACV-only homeowners may need to pay the gap out of pocket — or you may need to adjust your scope to fit their actual payout.
Every lead in Roof Claims CRM has dedicated ACV and RCV fields on the claim detail screen. Your whole team sees the same numbers — from the sales rep in the field to the accounting team running job P&L reports. No spreadsheets, no guessing.
ACV (Actual Cash Value) is the replacement cost of the roof minus depreciation. It's the first check the insurance company sends. For example, a $15,000 roof with $4,000 in depreciation has an ACV of $11,000.
RCV (Replacement Cost Value) is the full cost to replace the roof at current prices, without depreciation. Homeowners with RCV policies receive the full RCV after the work is completed — typically as a second check called a depreciation release.
To receive the depreciation (the difference between ACV and RCV), the contractor must complete the roof replacement and submit a final invoice to the insurance carrier. The carrier then releases the held-back depreciation as a second payment.
Roof Claims CRM is the only platform built specifically for insurance restoration roofing — ACV, RCV, supplements, and depreciation tracking built in from day one.
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