That ACV/RCV thing trips up a lot of people. Actual Cash Value is almost always less than what you’d pay to replace something new, especially with roofs. Replacement Cost coverage usually costs more up front, but it pays out better when you need it. The fine print really does matter... frustrating as that is. I’ve seen folks get caught off guard by depreciation more times than I can count. If you ever switch policies, double-check those details—sometimes the extra premium is worth it in the long run.
Honestly, I get why people lean toward RCV, but I’m not always convinced the higher premium is worth it for everyone. A lot depends on how old your roof is and how long you plan to stay in the house.
- If your roof’s already 15+ years old, you’re probably not getting much out of RCV anyway—some insurers won’t even offer it past a certain age.
- That “extra premium” can add up over time. If you never file a claim, it’s just money out the door.
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Maybe, but only if you actually end up needing a full replacement. For folks who are super risk-averse, sure, but if you’re careful about maintenance and keep an emergency fund, ACV might be enough.“sometimes the extra premium is worth it in the long run.”
I’ve had friends who paid for RCV for years and never used it. Meanwhile, I stuck with ACV and just budgeted for the difference. Not saying it’s for everyone, but sometimes the “safe” option isn’t always the most cost-effective. Just my two cents...
Honestly, I hear you on the RCV vs ACV debate. It’s one of those things where there’s no perfect answer for everyone. Personally, I lean toward RCV, but that’s mostly because I like sleeping at night knowing if a hailstorm decides to throw a party on my roof, I’m not scrambling for cash. But you’re right—if your roof’s older, or you’re planning to move soon, the math doesn’t really add up.
I had a neighbor who paid for RCV for years, then when his 18-year-old roof finally needed replacing, the insurer basically shrugged and said “nope.” He wasn’t thrilled, to put it mildly. Meanwhile, my cousin went ACV and just kept a little extra in his rainy day fund. Worked out for him so far, knock on wood.
At the end of the day, I guess it comes down to your risk tolerance and how much you like playing insurance roulette. For some folks, peace of mind is worth the extra bucks. For others, it’s just money down the drain if nothing happens. No shame either way.
I hear you on the insurance roulette. When my roof needed replacing last year, I went with ACV thinking I’d save a few bucks. Well, turns out “actual cash value” was way less than I expected—barely covered half the cost. If I could do it again, I’d run the numbers a bit more carefully and maybe stash extra cash aside. Sometimes the “cheaper” option isn’t so cheap in the end.
Sometimes the “cheaper” option isn’t so cheap in the end.
Man, you nailed it. I did the same thing—went with ACV because, hey, who doesn’t want to save a few bucks? Step 1: Feel smug about your “smart” choice. Step 2: Get the payout and realize it barely covers the cost of shingles, let alone labor. Step 3: Frantically check couch cushions for spare change. Next time, I’m budgeting for the “surprise” factor... roofs and wallets both need backup plans, apparently.
