Navigating Roofing Claims: Replacement Cost vs. Actual Cash Value Coverage

Roof in the middle of work is shown.

When it comes to roofing claims, understanding the nuances between replacement cost coverage and actual cash value (ACV) coverage is crucial for homeowners. At Centennial Roofing, we believe in empowering property owners with the knowledge needed to make informed decisions about their insurance coverage.

Many insurance carriers’ default to offering actual cash value coverage for your property’s roof. While this may seem like a cost-effective option initially, the repercussions become apparent after a significant wind or hail event. Actual cash value coverage considers depreciation, leaving property owners with a substantial out-of-pocket expense—beyond just the deductible—when it’s time to replace their roof.

On the flip side, replacement cost coverage provides a more comprehensive solution. This coverage accounts for the full cost of replacing your roof without factoring in depreciation. While some may hesitate due to perceived higher premiums, the reality often surprises homeowners. The difference in premium for full replacement cost is frequently negligible compared to the financial burden imposed by actual cash value coverage during a claim.

Choosing replacement cost coverage not only ensures that your roof is replaced without subtracting for depreciation but also alleviates the financial strain associated with unexpected repair costs. At Centennial Roofing, we advocate for homeowners to explore the long-term benefits of full replacement cost coverage. Make a wise investment in your property and your peace of mind by opting for comprehensive coverage that truly protects your home.

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