ACV vs. RCV Calculator
See exactly how your insurance carrier depreciates a claim. Enter the replacement cost, age, and your deductible to calculate your actual cash value payout, your recoverable depreciation, and what you should receive in total after repairs. Works for roofs, HVAC systems, flooring, cabinets, personal property, and any other covered loss.
Calculate Your ACV and Recoverable Depreciation
How ACV and RCV Are Calculated on an Insurance Claim
Replacement Cost Value (RCV) is what it costs to replace the damaged item with new materials and labor at today's prices. Actual Cash Value (ACV) is RCV minus depreciation — the amount the carrier deducts based on the item's age and useful life. Depreciation is calculated using the formula: Depreciation % = Age ÷ Useful Life, usually capped around 80% so even very old items retain some value.
On a Replacement Cost Value (RCV) policy, the insurance company pays in two checks. The first check is your actual cash value minus your deductible. Once the repairs are completed and you submit proof (invoices, photos, final contractor bill), the carrier releases the second check for the recoverable depreciation. Total payout equals RCV minus your deductible. On an Actual Cash Value (ACV) only policy, there is no second check — the depreciation is never paid, regardless of whether you complete repairs. For help navigating this process on a property damage claim, see our Florida public adjuster, Minnesota public adjuster, and Wisconsin public adjuster pages.
What Is Recoverable Depreciation?
Recoverable depreciation is the amount your insurance carrier initially withholds from your claim because of the item's age, but agrees to pay back once repairs are complete. On a Replacement Cost Value policy, every dollar of depreciation is recoverable — as long as you actually perform the repairs and submit documentation proving it.
That last part is where most homeowners lose money. A surprising number of policyholders cash the first ACV check, never complete the full scope of repairs, and never claim the recoverable depreciation. The carrier has no obligation to chase you for it. Depending on the state, you typically have 180 days to 2 years from the date of loss (or date of the first payment) to submit for the recoverable depreciation. If you miss the window, that money is gone.
Four Things Carriers Count On You Not Knowing About Depreciation
Labor depreciation is disputed
Some carriers depreciate both materials AND the cost of labor to install them. Several states (including CO, KY, VT, and others) have ruled labor depreciation improper. If your estimate shows depreciation applied to tear-off, installation, or labor line items, check your state's position — the depreciated labor may be fully recoverable.
Useful life is not a hard rule
A 20-year-old roof is not automatically worthless. The useful life values carriers use in software like Xactimate are estimates, not statutes. If your roof was in excellent condition (proper maintenance, no prior claims, recent inspection), the carrier's depreciation can be challenged with documentation.
The deductible only applies once
On an RCV policy, your deductible is subtracted from the first (ACV) check, not both checks. Your total out of pocket is one deductible — not two. If a carrier tries to apply the deductible against the recoverable depreciation payment, that is incorrect.
You have a deadline to collect
Recoverable depreciation is not held in escrow forever. Most policies require you to submit proof of completed repairs within 180 days to 2 years, depending on the state and carrier. Miss the deadline and the depreciation becomes non-recoverable — even though you paid premiums for a full RCV policy.
ACV vs. RCV Calculator FAQs
RCV (Replacement Cost Value) is what it costs to replace your damaged property with new materials at today's prices. ACV (Actual Cash Value) is the same number minus depreciation based on the item's age and useful life. On an RCV policy, the carrier pays ACV first, then pays the depreciation back once repairs are complete. On an ACV-only policy, the depreciation is never paid.
Recoverable depreciation is the amount the carrier withholds from your first payment based on depreciation, which they agree to pay back once repairs are completed. To collect it, you must complete the full scope of repairs in the approved estimate and submit proof — usually a final contractor invoice, photos of the completed work, and sometimes permits or inspection reports. Once submitted, the carrier releases the second check.
Yes. The calculator uses industry-standard useful life values for asphalt shingle, architectural, metal, tile, wood shake, and flat roofs. Select your roofing type and enter the age at loss — the tool applies the same depreciation formula carriers use in Xactimate. Keep in mind that the final depreciation amount on your actual claim can be disputed if your roof's condition was better than average.
Yes, and this is one of the most common reasons claim payouts fall short. Over-depreciation happens when a carrier applies an aggressive useful life, ignores the item's actual condition, depreciates labor costs in states that prohibit it, or applies depreciation to items that should be non-depreciable. A detailed review of the estimate, photos, and supporting documentation often uncovers thousands of dollars in improperly withheld payments.
On an RCV policy, the recoverable depreciation is only paid when repairs are actually completed and documented. If you keep the ACV check and never repair the damage, the depreciation is forfeited. Most policies also have a time limit — typically 180 days to 2 years — after which the recoverable depreciation becomes non-recoverable, even if you complete repairs later.
Check your declarations page. Look for "Replacement Cost" or "RCV" next to Coverage A (dwelling) and Coverage C (personal property). If it says "Actual Cash Value" or "ACV," you are on an ACV-only policy for that coverage. Many policies are RCV on the dwelling but ACV on older roofs — specifically through roof schedule endorsements that convert the roof to ACV after a certain age. If you are unsure, a licensed public adjuster can review the declarations page with you.
Yes. Depreciation is an estimate, not a fixed number. You can challenge it with evidence of the item's actual condition (maintenance records, recent inspections, photos before the loss), comparable sales data for roofs, or state law arguments if the carrier depreciated labor in a state that prohibits it. A licensed public adjuster can build the supporting documentation and negotiate a revised payout.
Think Your Carrier Over-Depreciated Your Claim?
Shoreline Public Adjusters represents homeowners and commercial property owners across Florida, Minnesota, and Wisconsin on claim disputes. We review the estimate, the depreciation schedule, and the supporting documentation at no cost. If depreciation was applied improperly — or if recoverable depreciation is still sitting with the carrier — we recover it.
Request a Free Claim ReviewShoreline Public Adjusters, LLC · FL G199012 · MN 40962416 · WI 21156868