If you’re a homeowner in Mississippi — especially along the Gulf Coast — changes in your homeowners insurance policy could be quietly costing you thousands. One of the most important trends right now is that more insurance companies are switching roof coverage from Replacement Cost Value (RCV) to Actual Cash Value (ACV).
At Oaktrust Insurance Group, we believe in keeping our clients informed so they can make smart coverage decisions. Here’s what you need to know about this shift and how it impacts your home and wallet.
🏠 RCV vs. ACV Roof Coverage: What’s the Difference?
Understanding the difference between replacement cost and actual cash value is critical when it comes to filing a roof damage claim:
✅ Replacement Cost Value (RCV)
- Pays for the full cost to repair or replace your roof at today’s market prices.
- Depreciation isn’t factored in.
- You only pay your deductible.
⚠️ Actual Cash Value (ACV)
- Pays only what your roof is worth today, factoring in age, wear and tear.
- A 15-year-old roof may have lost 50%+ of its value.
- You pay your deductible plus the depreciation.
Example:
A $12,000 roof with a $2,000 deductible:
- RCV Policy = You get $10,000.
- ACV Policy = If depreciation is $6,000, you only get $4,000.
🌪️ Why Are Insurance Companies Moving to ACV for Roofs?
This trend is growing rapidly across coastal and high-risk states like Mississippi. Here’s why:
- Storm Frequency: Wind, hail, and hurricane damage are becoming more common, resulting in more roof claims.
- Rising Costs: Roofing materials and labor have skyrocketed.
- Older Roofs: Homes with aging roofs are more likely to suffer damage — and cost more to repair.
- Risk Management: ACV helps insurers manage high losses and reduce the chance of fraud or inflated claims.
📍 How This Impacts Mississippi Homeowners
Living in coastal communities like Gulfport, Biloxi, Ocean Springs, and Pascagoula means you’re already in a higher-risk area. If your roof is more than 10–15 years old, your roof could be on an ACV schedule.
That could mean getting only a fraction of your roof’s replacement cost after a storm or hurricane.
🔍 How to Protect Your Roof and Your Wallet
At Oaktrust Insurance Group, we help you stay ahead of the curve. Here’s what you can do right now:
✅ 1. Review Your Current Policy
Make sure you know whether your roof is covered under RCV or ACV. This should be listed on your declarations page, or we can check it for you.
✅ 2. Know Your Roof’s Age and Condition
If your roof is over 10 years old, ask us about upgrade options and how it impacts your coverage.
✅ 3. Consider a Roof Upgrade
Installing impact-resistant shingles or storm-resistant materials could lower your premium and qualify you for RCV coverage.
✅ 4. Ask About Endorsements
Some companies offer roof restoration endorsements that restore RCV coverage — even for older roofs.
✅ 5. Work With a Local Agent Who Understands Mississippi Risks
We know the local market, the weather patterns, and the insurance carriers best suited to Gulf Coast homeowners.
💬 Get a Roof Coverage Review from Oaktrust Insurance Group Today
Don’t wait until your roof is damaged to find out you’re only covered for a fraction of the cost. Let the team at Oaktrust Insurance Group give your policy a free, no-obligation roof coverage review.
📞 Call us today at (228) 354-0877
📧 Email us at info@oaktrustinsurance.com
🌐 Visit oaktrustinsurance.com
Let’s make sure your roof — and your finances — are protected from the next storm.