ACV roof endorsements in hail country — why your roof pays 30-60% of replacement cost
By Severance Calculator Editorial · Updated
The problem
After decades of high-severity hail losses, carriers in the central US shifted to Actual Cash Value settlement on roof claims while keeping Replacement Cost Value on the rest of the dwelling. An asphalt shingle roof with a 25-year manufacturer warranty depreciates roughly 4% per year on the carrier schedule; a 15-year-old roof would settle at ~40% of replacement cost. Some carriers go further and apply ACV only to cosmetic damage (functional cosmetic exclusion), denying claims entirely when shingles are bruised but not yet leaking.
The data
Texas Department of Insurance permitted broad use of ACV roof endorsements after the 2016-2017 hail seasons; Colorado followed in 2018-2019. A typical 30-square asphalt roof replacement runs $12,000-$18,000 in 2026 dollars. ACV settlement at 15 years of age: $4,800-$7,200. Homeowner out-of-pocket: $7,000-$11,000 plus the deductible. Colorado HB22-1111 (effective 2023) restricted some carrier practices around roof claims but did not eliminate ACV roof endorsements.
What to do
Read your declarations page for "Roof Settlement," "Roof Schedule," or "Roof Surfacing Limitations" endorsements. If you have an ACV roof clause and your roof is over 10 years old, get quotes from carriers that still offer full RCV on roofs (typically mutual carriers and some regional carriers in hail states). Document roof condition with dated photos annually. Avoid cosmetic damage exclusions where possible — they let carriers deny granule-loss claims pre-leak.