Glossary

ACV roof endorsement

An endorsement that pays wind and hail roof damage at replacement cost less depreciation, even when the rest of the home is settled at full replacement cost.

Also called: actual cash value roof endorsement, ACV roof surfacing endorsement, roof ACV endorsement

An ACV roof endorsement changes how roof damage is paid. Instead of replacement cost, the insurer pays actual cash value: the cost to replace the roof minus depreciation for its age and condition. ISO's version is HO 04 93, which applies to windstorm or hail losses to roof surfacing, and many insurers use their own forms. The rest of the house keeps its normal replacement cost settlement.

Say a hailstorm damages a 14-year-old roof that costs $18,000 to replace, and the insurer applies 55% depreciation (hypothetical). The ACV payment is $8,100, less your deductible, and the depreciation is typically not recoverable. You pay the rest of the bill yourself.

Insurers apply these endorsements to older roofs, in hail-prone areas, or as a condition of staying on a policy, and they often give a premium credit in return. The trade is lower premium now for a bigger gap after a storm. Ask whether the endorsement covers only wind and hail or every cause, how the insurer calculates depreciation, and whether replacing the roof lets you drop the endorsement. Our depreciation calculator: actual cash value vs replacement cost can show the effect on a claim, and the guide Roof payment schedules and ACV roof endorsements explains related options.

Last reviewed October 10, 2026

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Related terms

Actual cash value What an insurer pays for damaged property: the cost to repair or replace it today, minus a deduction for age and wear, so less than a new-for-old payment. Replacement cost What it would cost to repair or rebuild with materials of like kind and quality at today's prices, with no deduction for age or wear. Depreciation The loss in an item's value from age, wear and obsolescence, which an adjuster subtracts when pricing what a claim should pay. Non-recoverable depreciation The age-and-wear deduction an insurer takes from a claim payment and never pays back, because the policy settles at depreciated value or repairs are not made. Roof surfacing payment schedule An endorsement that pays roof damage as a set percentage of replacement cost based on the roof's age and material, not full cost or a depreciation estimate.

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Related insurers

American Family Insurance Madison, Wisconsin mutual sold by exclusive agents in 19 states, with Homesite and partner programs reaching most others; the 6th-largest U.S. home insurer.

Related states

Kansas Kansas home insurance: State Farm and American Family lead, hail drives claims, contractor assignments are banned since 2026, and the FAIR Plan is the fallback. South Dakota South Dakota home insurance: State Farm and American Family lead a $555 million market where hail and wind drive claims and no FAIR plan exists.

Related tools

Roof claim payout estimator Estimate what a roof claim pays under replacement cost, actual cash value and roof payment schedule settlements, and what you would pay yourself.