The short answer: when your claim is approved you get a statement of loss (SOL). It is an offer, not a final number. Your contractor should break it down in plain English (ACV, RCV, depreciation, your deductible) and, if the adjuster missed anything needed to do the job to code or manufacturer spec, submit a supplement to correct it.
Once the carrier approves, you receive a packet called a statement of loss, or SOL. It is a detailed, many-line document that lists the damage they found, what they will pay to replace it, and how they will release the funds. Deciphering it on your own is nearly impossible, and this is the next place a good contractor earns their keep. Just send them a copy. Some contractors will only tell you the total you were approved for. Others, like Northcraft, do a full claim breakdown so you understand, in plain English, exactly what the carrier is offering (to start) and how the money is allocated.
The terms you need to know
- ACV, Actual Cash Value
- What the carrier believes your roof, siding, or windows are worth in their current, damaged state. This is usually the first check you get, arriving shortly after or along with the SOL.
- RCV, Replacement Cost Value
- The amount the carrier will pay, up to, to replace the damaged items. This is only released after the work is contracted and completed.
- Deductible
- The amount you are responsible to pay before coverage kicks in. Structures vary by carrier, but it is always listed in clear language on the declarations page of your policy. This is your guaranteed out-of-pocket.
- Depreciation
- The difference between ACV and RCV. It is released once the work is done, normally after the carrier gets a copy of the closed permit.
- Indemnification
- The carrier's responsibility to pay to repair your property. When they "indemnify" you, they are acknowledging that responsibility and stepping up to pay.
- LKQ, Like Kind and Quality
- The carrier must base its payment on materials of the same or better quality as what is currently on your home.
- COC, Certificate of Completion
- Signed by you and your contractor, confirming the work is done to your satisfaction so the carrier releases the depreciation.
- Mortgage release
- If you have a mortgage, the carrier puts the mortgage company on the checks so they sign off and confirm the work on their asset actually got done. It is why a homeowner cannot just cash a roof check and buy a boat.
When we do a claim breakdown, we pull all the funds from the SOL into an easy-to-read spreadsheet, split them into ACV, RCV, and depreciation, and show you how it all comes together.
The SOL is an offer, not the final word
This is important: the initial statement of loss is an offer. It is not hard and fast, and this is where a contractor who knows the process pays off. That is not about taking advantage of the carrier, the carrier has to agree to anything they pay, and it is on the contractor to justify every request. But adjusters are human. They have huge caseloads, they forget things, they miss items, or they are under pressure to move claims and issue an SOL that is not complete.
Supplements: fixing what the SOL missed
Your contractor can identify those gaps and submit a request called a supplement. That is needed when the SOL is missing items required to actually replace the damaged part of your home, or does not include enough of something to complete the work to manufacturer spec or to code. At Northcraft, we copy you on every communication with the carrier, so you can see exactly what we are requesting, why, and how they respond. Sometimes the SOL is already complete and we move straight to product selection. Other times there is more back-and-forth. It can feel slow, but it is always in your interest, and once we reach agreement, the fun begins.
Part 5 is the payoff: choosing your product and getting the roof on.
Straight answers.
What is ACV vs RCV on a roof insurance claim?
ACV (actual cash value) is what the carrier thinks your damaged roof is worth right now, usually paid as the first check. RCV (replacement cost value) is the full amount to replace it, paid only after the work is contracted and completed. The gap between them is depreciation.
What is a roofing supplement?
A supplement is a request your contractor submits when the statement of loss is missing items needed to properly replace the damaged part of your home, or does not include enough of something to meet code or manufacturer spec. The carrier still has to agree, and the contractor has to justify each item.
Is the insurance statement of loss (SOL) final?
No. The initial SOL is an offer, not a final number. Adjusters carry huge caseloads and miss things, so a good contractor reviews it and submits supplements for anything required to complete the job to code and spec.
What is recoverable depreciation on a roof claim?
Depreciation is the difference between ACV and RCV. It is held back by the carrier and released once the work is completed, usually after they receive a copy of the closed permit.
What is my deductible on an insurance roof claim?
Your deductible is the amount you pay before coverage kicks in. It is listed in clear language on the declarations page of your policy and is your guaranteed out-of-pocket on the project.
Think your home took a hit?
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