What is the difference between ACV and RCV?

Replacement cost is what it takes to replace the item today. Actual cash value subtracts depreciation. RCV policies typically pay the difference after the work is done. ACV policies do not.

Why is the first cheque small?

Because it is ACV minus the deductible. Age has already come off.

Do contents depreciate the same as building items?

Often not. This tool uses one age/life pair. Split building and contents and run it twice if you need to.

HyreRestore tools

Actual cash value against replacement cost, on a restoration loss

The first cheque is ACV minus the deductible. Recoverable depreciation is released after invoiced work, on an RCV policy. On an ACV policy it is never paid. Straight-line age/life here is illustration — carriers use their own schedules.

Two cheques on a replacement-cost policy NAIC and state regulators describe the sequence: ACV first, then the withheld depreciation after the work is done and evidenced. Contents often depreciate on a different schedule from building items.

Enter replacement cost, age, assumed life, deductible and RCV vs ACV. Depreciation is floored at the item’s age over life. The first cheque can be zero. This is not a settlement and it is not a reason to inflate a claim.

Age over life, then the deductible

Straight-line illustration. Nothing is emailed.

— First cheque

— Actual cash value

— Depreciation

— Recoverable depreciation

— Out of pocket after a completed RCV claim

What this assumed —

Illustration, not a settlement. HyreRestore does not adjust claims.

Questions this calculator answers

What is the difference between ACV and RCV?: Replacement cost is what it takes to replace the item today. Actual cash value subtracts depreciation. RCV policies typically pay the difference after the work is done. ACV policies do not.
Why is the first cheque small?: Because it is ACV minus the deductible. Age has already come off.
Do contents depreciate the same as building items?: Often not. This tool uses one age/life pair. Split building and contents and run it twice if you need to.

Sources and methodology

Figures dated 23 August 2026. Last reviewed August 16, 2026.

Rebuilding after a storm: RCV vs ACV (NAIC, retrieved 2026-08-09)
Actual cash value vs replacement cost value (North Carolina Department of Insurance, retrieved 2026-08-09)

Should I file? The first cheque, not the RCV, is what you compare to “is this worth filing.”
Is it covered? Valuation does not matter on an excluded peril.
Claim timeline Recoverable depreciation sits at the end of the sequence.

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Age over life, then the deductible

Questions this calculator answers

Sources and methodology

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