Understanding Insurance Terms

Insurance Guide

Helping you to understand common insurance terms seen in the roofing process.


Replacement Cost Value, or the initial insurance-estimated cost to replace your roof.

Recoverable Depreciation

The amount the value of your roof has decreased because it isn’t brand new.


Actual Cash Value. The RCV minus Recoverable Depreciation = ACV.

Deductible or Copay

Subtracted from your claim. The deductible or copay will be paid out-of-pocket to your contractor.

When your roof is completed, you will be given:

  • Your Recoverable Depreciation
  • Supplements for Permit
  • Taxes & Code Requirements

Which makes the total payout from the insurance company to you $10,000. Or, $1,000 less than your bill from Premier to account for your deductible.

*Please note the numbers listed here are for example purposes and actual costs vary from project to project.

If a roofer provides an estimate that is more than the RCV, you will be required to pay the difference to your roofing contractor.

Example: If your RCV is $10,000, and your estimate is $12,000, you owe the roofing contractor $2,000 (the difference) + $1,000 (the deductible) = $3,000 total out of pocket.

If a roofer provides an estimate that is less than the RCV, your insurance company will only release enough money to cover the estimate.

Example: If your RCV is $8,000, and your estimate is $8,000, you only owe the roofing company your $1,000 deductible = $1,000 total out of pocket for a cheap roof.

Working With Premier

When you sign our agreement, all you have to pay is your deductible, and you get the roof we discussed.

Example: If your RCV is $10,000, you only owe Premier your deductible = $1,000 total out of pocket for the full Premier Roofing System with the best available products and expert installation.


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Premier Roofing was awesome to work with! They did everything they said they would from the beginning. Communication was excellent and my roof looks great! Very pleased with how everything turned out. Definitely recommend Premier to everyone!

– Juanita H