Is your roof 10 years old?
If your roof is 10 year old, or older then you probably have ACV coverage on your roof.
In 2025, most insurance companies changed their policies regarding roofs.
ACV means Actual Cash Value.
The best way to explain ACV is this: Imagine something happens to your TV and it is an older model – not a flat screen, we are talking heavy, bulky and no smart chip. Something happens and the insurance company pays to replace it. If you have ACV coverage then the insurance company pays you the value to replace it with the exact same model and age.
Unless you go to a garage sale or to E-bay, you aren’t going to find that TV. But, the insurance company isn’t in the business of sourcing TVs. They owe you the value of what your TV was worth.
RCV means Replacement Cost Value.
If you have RCV coverage then you go buy a replacement TV that is similar in size and function. You are definitely going to be upgrading because most TVs now are flat screen and smart TVs.
The value/price difference between the old TV and the new & upgraded TV is called betterment.
Are you with me?
When an insurance company pays out a claim they pay the ACV coverage at the time of loss. They owe the RCV coverage when the claim is concluded.
The difference between ACV and RCV is called depreciation. This can sometimes include betterment.
Starting in 2025, many insurance companies placed ACV restrictions on roofs. If a roof is 10 year old, or older then it no longer has full RCV coverage.
Every insurance company is different and you should seek the professional advice of your licensed insurance agent to understand your specific policy.
ASK YOUR AGENT ABOUT YOUR POLICY
Impact Resistant roofs, Class 3 and/or Class 4 do not have this restriction with many companies. They retain full RCV coverage.
Class 3 and Class 4 have to do with the hail rating on the roof. Hail has to be very, very large to damage Impact Resistant asphalt shingles. What would normally total out a Class H roof isn’t going to faze a Class 3 and/or a Class 4 shingle.
IMPACT RESISTANT SHINGLES RECEIVE AN INSURANCE DISCOUNT
By putting on Class 3 and/or Class 4 shingles, most insurance companies give their policyholder a discount on their insurance premium. Not only do you have RCV coverage on your roof, but you have a reduced insurance rate in most cases.
YOUR HOME IS YOUR SINGLE BIGGEST INVESTMENT
Class 3 and/or Class 4 shingles are more expensive than “normal” shingles which are typically Class H. This is the betterment we talked about. The difference between the material cost is yours to pay if you upgrade your roof during an insurance claim.
If hail totals your Class H shingles then the insurance company owes to replace your roof with Class H shingles. The betterment to upgrade to Impact Resistant shingles is your cost to bear.
IS IT WORTH IT?
In addition to receiving RCV coverage on your roof and an insurance discount in most cases, the fact that you won’t be replacing a roof every few years from hail is a good thing. The decking underneath your shingles isn’t meant to be continually shingled. Each time the shingles are removed and replaced the decking is affected.
The decking on a roof that has been replaced say 6 times in 15 years isn’t going to be in as good of shape than on a roof where it has been replaced 2 times in 30 years.
This also means more debris in landfills each time a roof is replaced. Those shingles cannot be reused.
IT JUST MAKES SENSE . . .
If you are facing a roof replacement, then now is the time to upgrade to Class 3 or Class 4 Impact Resistant shingles.
Hail-resistant shingles that are rated Class 4 impact-resistant are the strongest protection to hail damage.
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This blog is NOT legal advice. It is not insurance policy advice. You should consult and attorney and/or a licensed insurance agent for your specific situation.
