This is Rex the Roofer with Masterpiece. Let’s talk about a couple of things in regards to the difference between an ACV policy and an RCV policy for your roof replacement in Denver. The first thing that you need to know about ACV, that stands for “Actual Cash Value.” So what the insurance company does is they depreciate the roof. Let’s say you have a twenty-year roof that’s been on ten years. They’re gonna depreciate the roof by 50 percent because it’s been on for that length of time and it only has half of it’s life expectancy after that. So the insurance company will give you the ACV check for your roof replacement and then they’ll get invoiced by your roofer for the RCV or the depreciation. Unfortunately a lot of people with a roof replacement, they don’t have an RCV policy that means a Replacement Cost Value. ACV or Actual Cash Value is what the roof is worth at present while RCV means once the work is completed, they will pay for the entire replacement of the roof. Unfortunately a lot of insurance companies out there, and I won’t mention names, but when it comes down to your roof replacement they have got an ACV policy. They’re doing that a lot with shake shingles and they’re doing that a lot with three-tabs now. Because they don’t want the expense of having to replace it because you’ve let it go for too long and not taking care of it. Because a lot of those roofs are in really bad condition. And they know that. And they know that at some point you will replace it and they just don’t want to get stuck with the whole bill. So when it comes down to your roof replacement it’s best to have an RCV policy or a Replacement Cost Value policy versus ACV. If you have ACV that means not only are you going to have to pay your deductible for your roof replacement but you’re also going to have to pay for the depreciation because they’re not going to cover that. So let’s say you have a ten thousand dollar roof for example and you have half of the life expectancy used up, then you are going to have to pay that five thousand plus say your deductible is a thousand, that’s six thousand dollars you’re going to have to come out of pocket for that roof replacement. So keep that in mind whenever you’re purchasing an insurance policy because a lot of times people get stuck with that at the end and they don’t know they have that. Maybe the insurance company or the agent didn’t explain that to them and it’s really important for your roof replacement to have an RCV policy. So check with your agent and make sure that you’ve got the right kind of policy because you don’t want to get caught up in a hail storm and then find out after the fact that the majority of the cost for your roof replacement will have to come out of pocket. If you have more questions or concerns about roof replacement in Denver, roof installation, roof repair, just leave a comment here and we will happy to help you.
Posted on 07Oct0