The Confusing Part
Two policies look identical, but one costs more because the RCV period is longer.
That premium difference feels arbitrary until you see the eligibility math.
How It Works
An RCV period is a cutoff. A 20-year period keeps more roofs in the replacement cost bucket than a 10-year period.
That means more claims get paid at replacement cost instead of depreciated value, which increases expected loss.
Where It Breaks Down
Longer RCV periods stop feeling worth it when your roof is far outside the window or you plan to replace soon.
The Tradeoffs
- Longer RCV period: higher premium, more roofs eligible for replacement cost.
- Shorter RCV period: lower premium, more depreciation risk on older roofs.
What Moves the Outcome
Risk Signals
- Roof age and construction
- Loss history in your ZIP
Coverage Structure
- RCV period length
- Depreciation assumptions
Market Context
- Appetite for older roofs
- Repricing after hail seasons
Deeper context
For claim math detail, see ACV vs RCV: How a Claim Check Gets Built.
How to Decide
If your roof is near the cutoff, longer RCV may pay back. If not, compare ACV.
Minnesota note: rates and carrier appetite can swing by county, so a Twin Cities renewal isn’t always a perfect proxy for greater Minnesota.