ACV Roofs as a Deliberate Price Strategy
Many carriers are pushing ACV roofs in hail-heavy markets. That feels like a downgrade, but it can also be a deliberate pricing choice.
Read More →Actual cash value (ACV)
Direct answer
Actual cash value pays depreciation-subtracted amounts, lowering premium but raising out-of-pocket costs at claim time.
Why it changes price
- ACV shifts depreciation risk back to you, which reduces expected loss.
- Premium drops can be real, but claim-day cash flow risk rises.
- ACV strategy works best when you have reserves.
Decision rule
If you can reserve for a roof loss, ACV is rational. If not, choose RCV.