RCV vs. ACV vs. Roof Payment Schedules: What Minnesota Homeowners Should Know Before the Next Storm
Two neighbors on the same St. Paul block can have the same hailstorm hit the same kind of roof and end up with very different out-of-pocket costs. The difference usually isn't the damage. It's the fine print in the policy, and most homeowners never look at it until after the storm.
What is Replacement Cost Value (RCV) roof coverage?
RCV pays what it actually costs to replace your roof with similar new materials, minus your deductible. Many insurers pay it in two parts: a first check for the depreciated value, then the held-back depreciation after the work is finished and documented.
What is Actual Cash Value (ACV) roof coverage?
ACV pays the depreciated value of your roof, meaning what it was worth given its age and wear, minus your deductible. The depreciation is not paid back. The older the roof, the bigger the gap you cover yourself.
What is a Roof Payment Schedule?
A roof payment schedule pays a set percentage of the replacement cost based on your roof's age and material. The percentage drops as the roof gets older. At 15 or 20 years, some schedules pay less than half. These endorsements have become much more common in Minnesota in the last few years, and many homeowners don't know they've been added at renewal.
Same roof, three policies: an example
Here's an illustrative example with round numbers for a 15-year-old roof that costs $32,000 to replace:
| Policy type | How it pays | Insurance pays | You pay |
|---|---|---|---|
| Replacement Cost (RCV) | Full cost minus $2,000 deductible (depreciation released after completion) | $30,000 | $2,000 |
| Actual Cash Value (ACV) | Depreciated value ($20,000) minus $2,000 deductible | $18,000 | $14,000 |
| Roof Payment Schedule | 40% of cost at 15 years ($12,800) minus a 1% wind/hail deductible on a $350K home ($3,500) | $9,300 | $22,700 |
Example only. Depreciation, schedule percentages and deductibles vary by insurer, policy, endorsement, roof age and material. Your policy and your insurer determine what's covered. See more examples on our Know Your Coverage page.
Five things to find on your declarations page tonight
- Roof settlement type: replacement cost, actual cash value, or a roof payment schedule?
- Wind/hail deductible: a flat dollar amount, or a percentage of your home's insured value?
- Cosmetic damage exclusions: some policies exclude dents that don't cause leaks, especially on metal.
- Ordinance or law coverage: whether your policy helps pay for items current building code requires during a replacement.
- Reporting time limits: how long you have to report storm damage after it happens.
If anything is unclear, call your insurance agent. They can explain exactly what your policy says.
Why waiting after a storm can cost you
Hail damage doesn't always leak right away. Bruised shingles lose granules, seals weaken, and small problems turn into leaks over the next few freeze-thaw cycles. The longer damage sits, the harder it is to show which storm caused it, and policies have reporting deadlines. Knowing your roof's condition after every major storm protects your options.
Why thorough documentation matters
Whatever policy you have, decisions get made from evidence. A good inspection gives you:
- Date-stamped photos of every slope, plus the siding, gutters, vents and soft metals
- Hail and wind impacts marked and measured
- Notes on roof age, layers, decking and ventilation
- A line-item repair or replacement estimate
That's what a Repair King storm damage inspection includes. You keep the report and decide what to do with it. Settling a claim is between you and your insurer.
A note on deductibles in Minnesota
Minnesota law does not allow a residential roofing contractor to pay, waive or rebate your insurance deductible. If a contractor offers to "cover your deductible," treat it as a red flag.
Find out what hit your home, and when.
Get a free hail history report for your address, or book a free roof inspection with a full photo report.
Get my free hail report Book a free inspectionOr call/text (612) 354-7677
Frequently asked questions
How do I know if my roof has a payment schedule?
Look on your declarations page and in the endorsements for wording like "roof surface payment schedule," "roof payment schedule," or "actual cash value roof." Your agent can confirm it.
Is ACV the same as a roof payment schedule?
No. ACV depreciates the roof based on its age and condition. A payment schedule uses a fixed table of percentages by roof age and material. Both can leave a large out-of-pocket share on older roofs.
Will Repair King tell me whether to file a claim?
No. That decision is yours, made with your insurer or agent. We inspect, document and show you what we find so you can decide with the facts.
Does Repair King do free roof inspections in the Twin Cities?
Yes. We inspect roofs across St. Paul, Minneapolis and the Twin Cities metro at no cost, and you keep the photo report.
Repair King is a licensed Minnesota roofing contractor (License BC695228), not an insurance agent, adjuster or attorney. This article is general education, not legal or insurance advice. Coverage depends on your specific policy. Confirm details with your insurance agent.
About the author: Mike Holmes founded Repair King in St. Paul in 2009. His team inspects, documents and rebuilds storm-damaged roofs, siding and homes across the Twin Cities. Repair King is rated 5.0 stars on Google.
