The Confusing Part
Many carriers are pushing ACV roofs in hail-heavy markets.
That feels like a downgrade, but it can also be a deliberate pricing choice.
How It Works
ACV shifts depreciation risk back to you. That reduces expected loss for the carrier, which lowers premium.
If you have cash reserves, you can self-fund that depreciation when a loss happens.
Where It Breaks Down
ACV stops working when the depreciation gap is larger than your emergency cash buffer.
It also stops working when you need to finance a roof and the policy will not cover the replacement cost.
The Tradeoffs
- Lower premium, higher retained loss.
- More control over cash flow, less certainty at claim time.
What Moves the Outcome
Risk Signals
- Roof age and condition
- Claim history in your territory
Coverage Structure
- ACV vs RCV settlement method
- Depreciation endorsements
Market Context
- Appetite for older roofs
- Repricing after regional losses
Deeper context
For the claim mechanics, see ACV vs RCV: How a Claim Check Gets Built and What Actually Triggers a Roof-Driven Repricing Year.
How to Decide
If you can reserve for a roof loss, ACV is rational. If not, choose RCV.
Minnesota note: rates and carrier appetite can swing by county, so a Twin Cities renewal isn’t always a perfect proxy for greater Minnesota.