The Two-Word Version
- ACV (Actual Cash Value): What your damaged roof is worth right now, after depreciation. This is usually the FIRST check you receive.
- RCV (Replacement Cost Value): What it costs to replace your roof with a new one of like kind and quality, today.
The gap between them is called recoverable depreciation, and it is how Texas insurance carriers protect themselves while still meeting the policy obligation.
A Real Example
Let’s say your 12-year-old asphalt shingle roof gets totaled by hail. Your adjuster scopes the replacement at $18,000. Your policy is RCV with a $2,500 deductible.
| Line Item | Amount |
|---|---|
| Replacement Cost (RCV) | $18,000 |
| Less: Depreciation on 12-year-old roof | ($7,200) |
| Less: Your deductible | ($2,500) |
| First check (ACV) | $8,300 |
| Recoverable depreciation (held back) | $7,200 |
| Total potential payout (RCV minus deductible) | $15,500 |
You get $8,300 up front. The other $7,200 is held back until you complete the work and submit final documentation. That is why the first check feels so small.
How You Recover the Depreciation
- You must actually do the work. If you cash the ACV check and never replace the roof, you forfeit the depreciation.
- You must use a licensed contractor. Self-installs typically do not qualify.
- You must submit a final invoice to the insurance carrier showing the full cost was incurred.
- The invoice must equal or exceed the RCV. If you completed the job for less than the RCV, you only get the depreciation up to what you actually spent.
- You must submit within the policy window — typically 180 days from the date of loss in Texas, but check your policy.
JRH Construction handles this paperwork for our customers. We submit the final invoice, the photos, and the close-out documentation to your carrier so the recoverable depreciation check shows up on your terms.
ACV-Only Policies: A Trap to Watch For
Some Texas homeowner policies — especially older ones, mobile-home policies, and policies on roofs older than 15-20 years — are written as ACV-only. That means there is no recoverable depreciation. You get the depreciated cash value and that is it. In our $18,000 example, an ACV-only policy would pay you the $8,300 and nothing more. You would be out-of-pocket $9,700 if you wanted to actually replace the roof.
If your policy is ACV-only, you have two options: pay the gap yourself (often via Hearth financing or a HELOC) or switch carriers at your next renewal — RCV policies are widely available in Texas and the premium difference is usually small.
The Deductible Math
Your deductible is the SAME whether you go ACV or RCV — it is deducted before the first check, regardless. In Texas, wind/hail deductibles are often a percentage of dwelling coverage rather than a flat dollar figure (commonly 1%, 2%, or 5% of dwelling). Example: $300,000 dwelling coverage with a 2% wind/hail deductible = $6,000 deductible.
Watch out for “we will waive your deductible” pitches. That is illegal in Texas under Insurance Code Sec. 2702 and a felony for the contractor. Any roofer offering that is exposing you to insurance fraud charges.
Supplements: How JRH Recovers Underpaid Claims
It is common for the initial adjuster scope to miss line items. Common omissions:
- Drip edge replacement
- Ice and water shield in valleys
- Pipe boot replacement
- Ventilation upgrades
- Decking replacement (rarely scoped initially even when damage is visible)
- Code-required upgrades (often left off in older neighborhoods)
We file supplements with the carrier and document the additional scope. On a typical $18,000 replacement we recover an average $2,000-$5,000 in supplement payments. That money goes to you, not us.
FAQ
How long do I have to file a hail claim in Texas?
Most Texas homeowner policies require notification within one year of the date of loss. Practical advice: file within 30 days when you can. Adjuster availability and the ability to clearly attribute damage to a specific storm degrade fast.
Will filing a roof claim raise my premium?
A single weather-related claim usually does not raise individual premiums in Texas, but it can affect your discount eligibility and renewal terms. Multiple claims within 3-5 years can.
Can I keep the difference if my contractor does the job for less than the RCV?
No. The carrier will only pay you depreciation up to what you actually spent. If RCV was $18,000 and you spent $14,000, the carrier pays you the depreciation that brings you to $14,000, not $18,000.
What if my carrier denies my claim?
You have rights. Most denied DFW hail claims can be reversed via supplement, second-opinion engineer report, or appraisal. JRH has resolved hundreds of denied claims for North Texas homeowners.
Should I file the claim before or after I get a contractor estimate?
Get the contractor inspection first. Filing without evidence often locks you into a smaller scope. Get a written report with photos, then file with that as your evidence package.
What if my deductible is higher than the contractor estimate?
Then a claim does not help you. Pay cash for the repair (financing available via Hearth) or wait until damage is severe enough to make the claim economical.
Does JRH handle the insurance paperwork for me?
Yes. We meet your adjuster on the roof, document the scope, file supplements when needed, and submit final close-out documentation to recover your depreciation. It is part of every JRH insurance-claim project at no extra charge.
Get a Free Insurance Claim Consultation
If you are unsure whether to file, what your policy covers, or how much your roof is actually worth, we will walk you through it for free.