ACV vs. Roof Payment Schedule: What’s the Difference and Why It Matters

April 26, 2025

If you’re shopping for homeowners insurance or reviewing your current policy, you might notice some confusing terms when it comes to your roof coverage. Two of the most common are ACV (Actual Cash Value) roof coverage and a Roof Payment Schedule endorsement.

Understanding the difference can help you avoid a big surprise when it’s time to file a claim.

Let’s break it down in simple terms:

What is ACV (Actual Cash Value) Roof Coverage?

ACV coverage means that if your roof is damaged by something like hail or wind, the insurance company will pay you based on what your roof is worth today, not what it would cost to replace it brand-new.

They consider:

The age of the roof
The material used
The current condition of the roof (good, fair, or poor)

Example: If your 20-year-old roof would cost $20,000 to replace, but because of age and wear it’s only worth $5,000, the insurance company would pay you $5,000 (minus your deductible).

Important:

If your roof is older but well maintained, you might get a slightly better payout.
If your roof is in poor shape, the payout could be very small.

What is a Roof Payment Schedule?

A Roof Payment Schedule sets a fixed percentage payout based on the age and type of your roof — no matter what condition it’s in.

Insurance companies create tables that say, for example:

0–4 years old: 100% payout
5–9 years old: 80% payout
10–14 years old: 60% payout
15–19 years old: 40% payout
20+ years old: 25% payout

Example: If your 20-year-old asphalt roof is damaged, and it costs $20,000 to replace, your policy might only pay $5,000 (25% of the replacement cost), minus your deductible — no questions asked.

Important:

The payout is locked in ahead of time.
Good maintenance or condition does not increase the payout.

Key Differences at a Glance

Feature	ACV Coverage	Roof Payment Schedule
Payout Based On	Age and condition	Age and material only
Adjuster Involvement	Yes (inspects condition)	No (fixed table)
Potential for Higher Payout	Yes, if roof is in good shape	No, payout is predetermined
Predictability	Less predictable	Very predictable

Which One is Better? ACV vs. Roof Payment Schedule

It depends on your situation:

Newer roofs may benefit more from ACV or full replacement coverage.
Older roofs (especially 20+ years) often end up with very limited coverage either way.
Roof Payment Schedules can be good for budget-conscious homeowners who want predictable terms.
ACV coverage might give you a little more if your roof is older but still in good shape.

Neither of these options are full replacement cost. They work similar to one another.

So what is the difference in ACV and a roof payment schedule endorsement?

Actual Cash Value is unkown until an adjuster can come out and assess the age of the roof and the condition at the time of the claim. The roof payment schedule puts it all on paper in advance and it’s based on the age of the roof.

Increased Deductibles Can Off-Set Payouts on Older Roofs

If you have a 20+ year old roof and you only get a payout of (hypothetically) 10% of replacement cost, that’s $2,000. Many home insurance companies have increased wind/hail or roof deductibles on renewals to make up for losses. There’s a good chance your deductible is higher than the payout on a new roof.

Roof Payment Schedule Scenario:

Assume this is a loss caused by a wind storm or hail damage.

Coverage A: $400,000 replacement cost on home.

2% Wind/hail Deductible: $8,000 (Cov. A: $400,000 x .02)

Roof Replacement Cost: $20,000

20% Payout on Roof According to Payment Schedule: $4,000 (Roof replacement cost * Scheduled payout percentage based on age of roof)

Your payout of $4,000 would be less than your $8,000 wind/hail deductible in this scenario.

The worst part is, if you called the claims department for your insurance company and opened a claim just to find out there is no payout, they hold it against you as a claim anyway. Now, you could suffer a surcharge or even get dropped if your home losses exceed your insurance company’s guidelines.

This is why it’s very important to understand all of your coverages BEFORE A CLAIM.

Contact Carter Family Insurance for a Roof Coverage Review!

At Carter Family Insurance, we’re here to help you understand your options and make the best choice for your home and budget. If you’re not sure what coverage you have — or what you need — reach out to me, Seth Carter.

I am happy to help you understand your policies, and make sure you have the right coverage for your family’s needs.

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ACV vs. Roof Payment Schedule: What’s the Difference and Why It Matters

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