When your home is damaged in a storm and you file an insurance claim, you’re quickly introduced to terms like RCV, ACV, and RPS — often without a clear explanation of what they mean or how they affect your coverage.
At Grand Rising Exteriors, we walk homeowners through these details every day, and we’ve found that understanding these terms can make all the difference in getting your project covered properly — and paid for fully.
Let’s break it down in clear, real-world terms.
An Everyday Analogy: Think of It Like Car Insurance
One of the easiest ways to understand RCV vs. ACV is to think of car insurance:
- ACV (Actual Cash Value) is like liability-only coverage — it pays out what your car is worth today, not what it costs to replace it.
- RCV (Replacement Cost Value) is like full coverage — it pays out what it would cost to repair or replace your car with brand-new parts.
- RPS (Replacement Policy Settlement) is a blended payout method, which we’ll explain below.
Now let’s apply that same logic to your home and roofing system.
What Is ACV – Actual Cash Value?
ACV is the depreciated value of your damaged property. In other words, it’s what your roof, siding, or gutters were worth at the time of the loss, taking into account age, wear and tear, and condition.
🔍 How It Works:
- Your roof was approved for $15,000 in repairs
- It’s 15 years old, and depreciation is calculated at $6,000
- Your insurance pays out $9,000 (ACV) minus your deductible
- You’re responsible for the difference unless your policy includes RCV
🔴 The Risk:
With ACV-only coverage, you’re on the hook for the depreciated amount. This can leave you thousands short — especially for older roofs or large projects.
What Is RCV – Replacement Cost Value?
RCV is the full cost to repair or replace your damaged property with similar materials, at today’s prices. It does not deduct for age or condition — and it’s the most comprehensive form of property coverage.
✅ How It Works:
- Insurance approves $15,000 in RCV
- You get an initial ACV payout (let’s say $9,000)
- Once the work is completed and the Certificate of Completion is submitted, the insurance company releases the recoverable depreciation ($6,000)
- Your only out-of-pocket cost is your deductible
🟢 Why It Matters:
With RCV, you can restore your home without cutting corners, and your insurance pays for the full replacement (minus your deductible).
What Is RPS – Replacement Policy Settlement?
RPS, or Replacement Policy Settlement, is a less common but growing policy type that blends RCV and ACV rules.
🧾 How It Works:
- The policy may offer limited RCV coverage only under specific conditions
- In some cases, depreciation is partially non-recoverable
- Homeowners often receive less than full RCV even if they complete the work
Think of it as partial full coverage — better than ACV-only, but not as generous or consistent as traditional RCV.
Common Pitfalls:
- RPS policies can mislead homeowners into thinking they have full coverage
- You may not get the entire depreciated amount back
- The payout rules are often buried in fine print
At Grand Rising Exteriors, we always review your policy closely to determine what type of settlement it provides — and to help set clear expectations from the start.
How It Impacts Your Roofing or Restoration Project
| Term | You Receive | You Pay | Common With |
|---|---|---|---|
| ACV | Depreciated amount only | The difference + deductible | Older policies, budget carriers |
| RCV | Full replacement cost | Deductible only | Standard on most homeowner policies |
| RPS | Partial coverage, conditions apply | Possibly more than deductible | Some newer or “limited” plans |
Timing of Payments
With RCV or RPS policies, you’ll typically receive:
- ACV payment up front
- Recoverable depreciation after work is completed
- Supplemental payments if additional damage or code upgrades are approved
This is why paperwork like your Certificate of Completion is so important — it triggers the release of remaining funds.
Final Thoughts: Know What You’re Covered For
If you’re not sure what type of policy you have — RCV, ACV, or RPS — don’t worry. Most homeowners aren’t. That’s why it’s so important to work with a contractor like Grand Rising Exteriors who knows how to:
- Interpret your insurance policy
- Communicate with adjusters
- Submit documentation correctly
- Maximize your coverage while staying compliant
Your home deserves to be restored fully, legally, and safely — not just patched up to match a partial payout.
Understanding the difference between RCV, ACV, and RPS isn’t just about insurance jargon — it directly affects what your insurance will pay and what you may be left to cover out of pocket. At Grand Rising Exteriors, we’re committed to helping homeowners make sense of their coverage, avoid costly surprises, and get their homes restored the right way.
If you’ve experienced storm damage or aren’t sure what your policy really covers, we’re just a call away. Let us help you navigate the process, maximize your claim, and bring your home back to pre-storm condition — or better.
