Insurance education
ACV, RCV, and depreciation in a roof claim
These insurance terms affect claim payments but do not set a contractor's construction price.
- Author
- At-Cost Roofing editorial team
- Reviewer
- At-Cost Roofing editorial team
- Publication status
- Published 2026-08-31 · Updated 2026-08-31
Start with the policy terms
Actual cash value, replacement cost value, and depreciation describe insurance calculations. They do not tell a contractor what to charge, and their effect depends on the policy and the carrier's claim decision.
Read the policy definitions before relying on shorthand
Read the definitions and limits in the applicable policy instead of relying on a contractor's shorthand explanation.
Ask the carrier what proof releases any recoverable amount
Ask the carrier which invoices, proof of completion, dates, or other records are required before any recoverable amount can be considered.
Keep deductible payment evidence
Keep evidence of the deductible actually paid because Texas law prohibits a contractor from waiving or absorbing it.
Make the final construction invoice match the real transaction
The final invoice should show the real agreed construction and payments even when those numbers differ from an earlier claim estimate.
What the roofer should and should not explain
A roofer can describe the scope, price, change records, photographs, and completion documents. Questions about how ACV, RCV, or depreciation will be paid belong with the carrier or a properly licensed policyholder representative.
Keep the construction and claim roles separate
At-Cost's invoice must show the real construction transaction; it cannot decide what ACV, RCV, or recoverable depreciation means under a particular policy. The homeowner should ask the carrier which documents it needs and when any additional claim payment may be released.
About the author
At-Cost Roofing editorial team
At-Cost separates published source material, local public records, and approved operating facts. This page was reviewed by At-Cost Roofing editorial team and is included in At-Cost's public roofing library.
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