Insurance & Deductibles: What Homeowners Need to Know

What Does It Mean When ACV Items Are Applied Toward My Deductible?

When filing a roofing insurance claim, your insurance company may calculate your roof’s value in two ways:

• Replacement Cost Value (RCV) – The total cost to replace your roof with new materials.

• Actual Cash Value (ACV) – The depreciated value of your roof based on age and wear.

If your policy allows, your insurance company may apply the ACV of certain materials toward your deductible. This means the insurance company is using the depreciated value of old materials to reduce the amount you owe out-of-pocket.

💡 Example:

• Your roof replacement cost is $10,000.

• Your policy has $3,000 in depreciation and a $1,000 deductible.

• The insurance company pays you $7,000 upfront (ACV amount).

• If ACV is applied to the deductible, this could reduce your out-of-pocket costs.

Every policy is different, so it’s important to check with your insurance adjuster to see how your claim is handled.

Does This Mean I Don’t Have to Pay My Deductible?

No. You are still responsible for paying your deductible as part of the claim. The difference is how the deductible is applied in your insurance payout. If ACV is applied toward your deductible, it can reduce how much you need to pay out-of-pocket upfront, but you are still responsible for your portion of the cost.

Can a Roofing Contractor Waive My Deductible?

🚨 No! Be cautious of any contractor who offers to waive, reimburse, or cover your deductible—it is often illegal. 🚨

Some states have strict insurance fraud laws that prohibit contractors from waiving deductibles. If a contractor inflates their invoice or offers to “cover” your deductible, it could be considered insurance fraud—potentially leading to legal trouble for both the homeowner and the contractor.

💡 Tip: Work with a licensed and insured roofing company that follows all legal and ethical guidelines.

How Can I Know If My Insurance Company Is Applying ACV
Toward My Deductible?

Your insurance adjuster should provide you with a claim summary that outlines:

✅ Your replacement cost (RCV)

✅ Your deductible amount

✅ Any depreciation applied

✅ The actual cash value (ACV) payout

If you’re unsure, we recommend asking your adjuster to clarify how your deductible is being handled.

Need Help Understanding Your Insurance Claim?

At Ridgeroof, we help homeowners navigate roofing insurance claims with honesty and transparency. If you have questions about your estimate, claim paperwork, or deductible, we’re here to help!

Recommendation

To fully understand how your roof is covered under your homeowner’s insurance policy in Kentucky, review your policy documents and discuss them with your insurance agent. This will help you know whether your roof is insured on an ACV or replacement cost basis and clarify any specific deductibles that may apply.