RCV vs ACV: why your first insurance check is smaller than you expected
General information, not legal or insurance advice. Your policy language controls.
The most common shock in a home insurance claim isn't a denial — it's the first check. You claimed a $2,000 TV and got $900. Nothing went wrong: you just met depreciation. Here's how the two payout numbers work, and how to collect the part most people leave on the table.
The two numbers
- RCV — Replacement Cost Value. What it costs to buy the same (or equivalent) item new, today. This is the number your coverage limit is usually built on.
- ACV — Actual Cash Value. RCV minus depreciation for age and wear. A 5-year-old sofa that costs $1,300 new might carry an ACV of $500.
How the payout actually flows
With a typical replacement-cost policy the insurer pays in two steps: first a check for ACV, then — after you actually repair or replace and show receipts — the difference up to RCV, called recoverable depreciation.
That second step is where money quietly dies. It requires action from you, it has a deadline (often 6–12 months from the loss — check your policy), and after months of displacement many families simply never file it. Insurers don't chase you to pay more.
Three rules that protect the second check
- Keep every replacement receipt. No receipt — no recoverable depreciation. Photograph receipts the day you get them, not «later».
- Watch the deadline. Find the recoverable-depreciation time limit in your policy and set a reminder well before it. If repairs are delayed, ask for an extension in writing before the date passes.
- Challenge bad depreciation. Schedules are estimates. Condition, purchase receipts and realistic lifespans are fair arguments — politely, in writing, item by item.
ClaimsVault keeps every replacement receipt photographed, every deadline reminded, and exports the whole file for your adjuster. $9.99 once, data stays on your phone.
FAQ
Why was my first insurance check so small?
Most policies initially pay Actual Cash Value (ACV) — replacement cost minus depreciation. The rest (recoverable depreciation) is released only after you actually repair or replace items and submit receipts within your policy's time limit.
How do I get the rest of the money after an ACV payment?
Complete the repair or buy the replacement, keep the receipt, and submit it to your insurer before the deadline in your policy (often 6–12 months, extensions possible in writing). The insurer then pays the difference up to your RCV.
Is depreciation negotiable?
Often, yes. Depreciation schedules are estimates, not law. If the adjuster depreciated your 3-year-old TV by 50%, you can push back with the item's actual condition, purchase receipt and expected lifespan.
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