An ACV Roof Is a Price Move, Not a Gift.
ACV lowers premium by shifting depreciation risk to you, which can be rational with reserves.
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.