Insurance Resource
RCV vs. ACV in Missouri: What Your Policy Actually Pays
The difference between Replacement Cost Value and Actual Cash Value can mean thousands of dollars on a Missouri roof claim. Most homeowners don't know which one they have — or how to collect the full amount.
The Core Difference
RCV (Replacement Cost Value) pays the full cost to replace your roof with new materials at today's prices — minus your deductible. Depreciation is withheld initially but released after you complete repairs.
ACV (Actual Cash Value) pays RCV minus depreciation — permanently. On a 15-year-old roof, you might receive 40–60% less than the actual replacement cost. There is no depreciation release on an ACV policy.
Side-by-Side: Same Roof, Different Policies
Example: 15-year-old roof, $18,000 replacement cost, 50% depreciation applied by insurer.
How to Collect the Full RCV Amount
On an RCV policy, the insurer withholds depreciation until you complete repairs. Here's the process:
Receive your initial ACV payment
Your insurer pays the depreciated value first. This is not the final settlement — it's the first installment on an RCV policy.
Complete the repairs
You must actually complete the roof replacement (not just get an estimate) to trigger the depreciation release. Most policies require this within 180 days to 2 years.
Submit proof of completion
Send your insurer the final invoice and proof of payment. Some insurers also require photos of the completed work.
Receive the recoverable depreciation
The insurer releases the withheld depreciation. This is your money — don't leave it on the table.
What Missouri Law Says About Depreciation
Labor depreciation is contested in Missouri
Missouri has no statute explicitly prohibiting insurers from depreciating labor costs. Some insurers depreciate only materials; others depreciate both materials and labor. Your policy language controls — and this is one of the most common sources of underpayment on Missouri roof claims.
Depreciation methodology varies by insurer
Insurers use different depreciation schedules. A 15-year-old roof might be depreciated 40% by one insurer and 60% by another. The methodology isn't standardized, and it's one of the most common areas where claims get underpaid. An experienced advocate can challenge excessive depreciation.
The depreciation release window is real
Most Missouri RCV policies require you to complete repairs and file for the depreciation release within a set window — commonly 180 days to 2 years from the date of loss. Miss that window and you forfeit the withheld amount. This is money you're owed — don't let the deadline pass.
How to Find Out Which Coverage You Have
Look at your declarations page (the summary page at the front of your policy). It will list your coverage type as "Replacement Cost" or "Actual Cash Value." If it says "ACV" or "actual cash value," you have the lesser coverage.
If you're not sure, call your agent and ask directly: "Is my roof covered at replacement cost or actual cash value?" Get the answer in writing.
Make Sure You're Getting the Full Amount
Our team includes two former insurance claims adjusters. We know exactly how to document your claim and make sure the depreciation release process goes smoothly.