ACV vs RCV calculator for a roof insurance claim
ACV (actual cash value) is RCV (replacement cost value) minus depreciation. On a replacement cost policy the insurer usually pays ACV minus the deductible first, then releases the depreciation after the work is documented. Enter the numbers from a loss statement to see each payment.
On this page
First check$10,600
- Second check (depreciation)
- $5,400
- Actual cash value
- $12,600
- Depreciation
- $5,400
- Total from the insurer
- $16,000
- Homeowner pays
- $2,000
Runs in your browser. Nothing you type is sent or saved. The result is an estimate from your own inputs, not a quote. General information, not insurance advice: the policy and the insurer decide what a claim pays.
How the ACV vs RCV math works
- Depreciation = RCV x depreciation percent.
- ACV = RCV minus depreciation.
- First check = ACV minus the deductible.
- Second check = the depreciation, on a replacement cost policy, after completion is documented. On an actual cash value policy there is no second check.
- Homeowner pays = RCV minus everything the insurer pays.
Real loss statements depreciate line by line, and some lines are not depreciated at all, so use the totals printed on the statement. The full walk-through is in ACV vs RCV on a roof claim.
Example with example numbers
With the example numbers loaded above, an $18,000 roof with 30% depreciation and a $2,000 deductible pays $10,600 first. On a replacement cost policy the $5,400 holdback follows after the roof is done, and the homeowner pays only the deductible. On an actual cash value policy the homeowner covers the $5,400 too.
Collecting the second check
Holdbacks get lost when nobody owns the paperwork. Alvin can track which check has arrived on each job, assemble the final invoice, completion certificate and photos, and draft the follow-up for a person to approve. Alvin never negotiates a claim. See how to collect recoverable depreciation.
Frequently asked questions
What is the difference between ACV and RCV?
RCV is the cost to replace the roof today. ACV is that cost minus depreciation for age and condition. A replacement cost policy usually pays ACV first and the depreciation later; an actual cash value policy pays ACV only.
How is depreciation on a roof calculated?
The insurer sets it, usually from the roof's age against its expected life and its condition, and applies it line by line on the loss statement. Use the depreciation shown on the statement, not an estimate.
Can a roofer cover the deductible?
In many states a contractor cannot waive, absorb or rebate an insurance deductible. Check your state's rule. This is general information, not legal advice.
The math is the easy part. Alvin does the office work after it.
Alvin is the personal assistant for home services businesses. Your team asks in the app or forwards an email, and Alvin does the work across QuickBooks, your CRM and your suppliers. Anything that spends money or goes to a customer waits for your approval.