What’s the difference between ACV and RCV?
ACV is the depreciated cash value of your roof today; RCV is what it costs to replace it new — and the gap between them is the depreciation you have to earn back.
Actual cash value (ACV) is what the insurance company thinks your roof is worth right now, after subtracting wear and age. Replacement cost value (RCV) is what it actually costs to put a brand-new roof back on the house at today’s prices.
On most replacement-cost policies, the carrier pays the ACV up front and holds back the difference — the recoverable depreciation — until the work is done and you send proof. So the first check is almost never the full job.
Knowing which number you’re looking at on the loss summary tells you how much money is still on the table. If you only collect the ACV check, you and the homeowner are leaving the held-back depreciation behind.