After a roof takes on damage from a natural disaster, a homeowner must work through the insurance claim process in order to get their roof back in its best working order.
What is ACV?
ACV is the Actual Cash Value of a claim. This is not the full amount of the claim or even what the insurance company will pay. It is used to determine the down payment amount given to the insured only.
How is ACV calculated?
ACV is calculated by taking the depreciation amount and deducting it from full replacement value. If the roof is supposed to last 20 years and a storm damaged it at 10 years, the depreciated value would be 10 years or 50% of the full replacement cost. If a new roof costs $50,000, the ACV would be 50% of that amount or $25,000. Remember this is only the down payment and not the full amount of the claim.
ACV and depreciation?
The ACV, or Actual Cash Value, is really the Depreciation value of a claim. It’s used to determine the down payment amount given to the insured and is not the full amount of the claim.
Discover how much insurance should be paying you. Contact Kelly Roofing today to walk through this process.
*The statements on this page are personal interpretations and opinions from limited experience and legal advice provided to Kelly Roofing and/or Kelly Roofing’s clients and are not to be used as legal guidance. Kelly Roofing is not qualified or licensed to provide insurance advice, discuss claim information, act as a public adjuster or provide legal representation.Discover how much insurance should be paying you