RCV (Replacement Cost Value)

Most homeowner policies in North Carolina settle storm-damage roof claims on an RCV basis. You receive an initial check for actual cash value (ACV — RCV minus depreciation) and a second “recoverable depreciation” check after the work is finished and the carrier has the final invoice. The total of those two checks, minus your deductible, equals the full RCV.

There is a catch we see often in NC: some carriers convert older roofs from RCV to ACV at a certain age — usually 10, 15, or 20 years — even when the rest of the policy is RCV. The clause is buried in the loss-settlement section of the declarations page. Read it before you assume your 18-year-old roof is paying full replacement.