The Confusing Part
Homeowners compare premium by changing two levers at once: deductible and settlement method.
That makes the math look noisy, but the tradeoff is simple.
How It Works
Lower deductibles reduce your upfront loss on any claim. RCV reduces depreciation loss on roof claims.
Both reduce your worst-day cost, but they move premium differently.
Where It Breaks Down
Lower deductibles stop working when small claims lead to higher renewal pricing.
RCV stops working when the premium delta is larger than the depreciation you would otherwise absorb.
The Tradeoffs
- Lower deductible: cheaper loss day, possible renewal penalties.
- RCV: higher premium, more certainty on roof replacement.
What Moves the Outcome
Risk Signals
- Claim frequency and severity
- Roof age and loss history
Coverage Structure
- Deductibles and settlement method
- Endorsements that affect roof payment
Market Context
- Appetite for roof-heavy books
- Renewal repricing behavior
Deeper context
For the longer explanation, see ACV vs RCV: How a Claim Check Gets Built.
How to Decide
If you have reserves for depreciation, lower deductible plus ACV can win. If not, keep 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.