Think your homeowners insurance will fully cover a new roof after a hailstorm?
What if your coverage quietly changed, leaving you to pay $12,000 out of pocket?
Each spring, we brace for green skies and tornado sirens. Like most homeowners, you probably assume your insurance will cover a new roof if a major storm hits.
But many Texas homeowners are surprised to learn their coverage has been quietly downgraded. In this article, you’ll learn the critical difference between Replacement Cost Value (RCV) and Actual Cash Value (ACV), and how that one detail could cost you thousands.
We’ll cover:
- What ACV and RCV actually mean
- Why your policy may already be downgraded
- What to check before the next storm rolls through
The Hidden Roof Risk in Most Texas Policies
Most homeowners believe their policy will cover the full cost of replacing a damaged roof. But if your roof is more than 10 years old, there’s a strong chance your coverage has been downgraded to Actual Cash Value (ACV), and that has major consequences.
What Is Replacement Cost Value (RCV)?
RCV means your insurance pays to replace the roof in full, with no deduction for depreciation.
Example:
A 15-year-old roof is destroyed by hail. It costs $20,000 to replace.
Your insurance pays the full $20,000 (minus your deductible).
You get a brand-new roof.
What Is Actual Cash Value (ACV)?
ACV subtracts depreciation based on the roof’s age.
Example:
Same roof. Same storm. Same $20,000 replacement cost.
If your roof has lost 60 percent of its value, the insurer pays only $8,000.
You cover the remaining $12,000 out of pocket.
This downgrade often happens automatically at the 10- or 15-year mark and is rarely disclosed clearly by the carrier.
Frequently Asked Questions
Can a roofer waive my deductible?
No, and it’s illegal.
Texas House Bill 2102, passed in 2019, makes it a crime for contractors to waive or “eat” your insurance deductible. If a roofer offers to do it, they are asking you to commit insurance fraud.
And if they’re willing to break that law, are they trustworthy enough to handle your roof?
My roof is 12 years old. Can I still get RCV?
Possibly, but timing matters.
While some carriers automatically downgrade based on age, others allow you to retain RCV if your roof is in good condition. At Neill Insurance, we can arrange a professional roof inspection and certification to help preserve or restore your eligibility.
Don’t Wait for the Sirens
The worst time to learn your roof is only covered under ACV is during a storm, when water is already leaking into your home. A quick, pressure-free policy review now can prevent major out-of-pocket expenses later. At Neill Insurance, we don’t believe in surprises. One of the first things we check when reviewing a homeowner’s policy is the Roof Settlement Clause, the section that determines whether you have ACV or RCV.
Know Before the Storm Hits
If your roof is more than 10 years old and you haven’t reviewed your policy recently, you may no longer have the protection you think you do. Too many Roanoke homeowners find out the hard way that their coverage was quietly downgraded. At Neill Insurance, we help you understand exactly what your policy will, and won’t, pay for, so you can make informed decisions before the next storm. No pressure, just clarity.
