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 →Roof settlement
Direct answer
Roof settlement method (ACV vs RCV) dictates depreciation risk and drives premium differences.
Why it changes price
- ACV pays depreciated value; RCV pays replacement cost after repair.
- Settlement method changes expected loss more than many other roof tweaks.
- Carrier appetite for roof-heavy books amplifies the premium swing.
Decision rule
If you can fund depreciation, ACV can fit. If not, pay for RCV.