10/19/2026
🏠 ACV vs. RCV: WHAT WILL YOUR INSURANCE ACTUALLY PAY?
Did you know that two homeowners with identical storm damage could receive significantly different insurance payments?
The difference often comes down to two important terms in your homeowners insurance policy: Replacement Cost Value (RCV) and Actual Cash Value (ACV).
✅ RCV — Replacement Cost Value
Generally covers the approved cost of replacing your damaged roof with comparable materials, without deducting for depreciation. Your deductible and policy terms still apply.
⚠️ ACV — Actual Cash Value
Accounts for depreciation based on your roof’s age and condition. The older your roof, the less your insurance company may pay toward replacing it.
💰 LET’S LOOK AT AN EXAMPLE:
Your roof costs $20,000 to replace, and you have a $2,000 deductible.
🟢 RCV Policy: Potential insurance payment of $18,000.
🟠 ACV Policy: If your roof has depreciated by $10,000, your potential insurance payment could be just $8,000.
That’s a $10,000 difference in out-of-pocket costs!
These are simplified examples. Actual payments depend on your policy, coverage limits, and approved damage.
⚠️ HERE’S WHAT MINNESOTA HOMEOWNERS NEED TO KNOW:
Insurance companies are increasingly offering roof coverage with depreciation provisions, especially on older roofs. Your coverage may also change at renewal.
Don’t assume you have the same coverage you had when you purchased your home!
OUR ADVICE:
Take a few minutes to review your policy or contact your insurance agent. Ask specifically whether your roof is covered under RCV or ACV and whether any age-based restrictions apply.
⛈️ If your home was impacted by the June 19, 2026 hailstorm, understanding your coverage is an important first step.
At MNRC, we believe an educated homeowner is an empowered homeowner. Our team is here to help you evaluate your roof’s condition and understand your replacement options.
📲 Contact MNRC to schedule a professional roof inspection.
MNRC | Your Trusted Partner
