Insurance roofing scopes are full of acronyms that decide exactly what you get paid and when. RCV, ACV, depreciation, and O&P are the big four. Here is what each one means in plain English — and how to read them on the claim.
RCV — Replacement Cost Value
RCV is what it costs to replace the damaged roof today, at current prices, with no deduction for age or wear. It is the full, brand-new price of the work — on most line items, the largest number.
ACV — Actual Cash Value
ACV is the RCV minus depreciation — what the roof was actually worth at the moment it was damaged, accounting for how much life it had already used. ACV is usually what the carrier pays out first, before the work is done.
Depreciation and recoverable depreciation
Depreciation is the value the roof lost to age and wear: RCV minus ACV. When a policy has recoverable depreciation, that withheld amount is released back to you after the work is completed and invoiced — so the gap between ACV and RCV is money you collect once the job is done, not money you lose.
O&P — Overhead and Profit
O&P (often quoted as "10 and 10") is overhead and profit added to a job complex enough to need a general contractor coordinating multiple trades. It is commonly owed on multi-trade restoration work — and one of the most frequently missed items on a first scope.
How they fit together on a line
On a single line you will typically see the RCV, the depreciation, and the ACV side by side — for example a $7,125 RCV with $1,200 of depreciation leaves a $5,925 ACV. Read across every line and the claim's full picture appears.
GetToRoofing pulls RCV, ACV, depreciation, and tax for every line into your spreadsheet — so you can see the entire claim in sortable columns, not just the headline number, and check it against your own inspection.