How Do I Know if My Policy Is ACV or RCV?
Your declarations page or policy wording says so, under dwelling and personal property coverage, naming actual cash value or replacement cost.
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Finding it on your own paperwork
Look at the declarations page first, the summary page that lists your coverages and limits. It sometimes names the valuation method right there next to dwelling coverage or personal property coverage. If it doesn't, the full policy wording will, usually in a section called Loss Settlement or Valuation of Property. Roofs often get called out separately, since many insurers now write roof coverage on an actual cash value basis even when the rest of the house is replacement cost. If you can't find either document, the agent or insurer who issued the policy can tell you which applies, and the adjuster handling your claim should already know before the offer is written.
If your roof or personal property is settled at actual cash value, the payout factors in depreciation, so the check can land thousands below what replacing it actually costs. That gap is what makes comparing coverage worth doing now, before the next renewal, rather than discovering it mid-claim again. A policy with replacement cost on those items costs more upfront but closes that gap entirely.
Why the first check still comes in low
If your policy is replacement cost on paper but the adjuster's first check still came in low, it is probably not a mistake. Most replacement cost policies pay in two parts. The first check is the actual cash value amount, meaning the repair or replacement cost minus depreciation, and sometimes minus your deductible too. That is normal even on a full replacement cost policy. The second part, called recoverable depreciation, comes once you complete the repair or replacement and show the insurer proof, usually a paid invoice or contractor receipt.
Recoverable depreciation is the gap between what the item would cost new and what the adjuster subtracted for age and wear. Your policy has to say this amount is recoverable for you to ever see it. If the paperwork calls it nonrecoverable depreciation, that money is gone, even if everything else on the policy is replacement cost. This is worth checking line by line on the estimate the adjuster gives you. A single policy can split it by item. The roof might be nonrecoverable while the contents inside the house are fully recoverable.
There is usually a deadline to claim that second check. Insurers commonly give a window, often measured in months, after the date of loss or the date of the first payment, for you to finish the work and submit proof. Your policy or the claim paperwork will state the actual deadline. It is not automatic. Nobody cuts that second check without you sending in the invoice and asking for it. If you've completed repairs and haven't been paid the holdback, that is on you to follow up on, not something the insurer tracks for you.
If you never plan to rebuild or replace the item the way the policy assumes, the depreciation holdback may not be worth chasing. Some insurers require the replacement to match the original in kind and quality before releasing it. If the amount withheld seems disconnected from the actual age or condition of what was damaged, that is a fair thing to question directly with the adjuster or through the insurer's claims review process. Depreciation schedules are supposed to reflect real wear, not a flat percentage applied without regard to the item.
Who decides how much something has depreciated
The adjuster calculates depreciation using an estimate of the item's age, its expected lifespan, and its condition before the loss. Software does most of this work now, applying a depreciation schedule by category. A ten-year-old roof with a 25-year expected life gets depreciated differently than a roof installed two years ago. The same logic applies to flooring, cabinets, appliances, even fencing. You're not left to guess at this. The adjuster's written estimate should show the age assumed for each item and the percentage or dollar amount subtracted.
The adjuster's estimate is a starting point, not a final ruling. If the adjuster assumed your roof was fifteen years old and it was actually eight, with records or a receipt to prove it, that is grounds to ask for a revised depreciation figure. The same goes for anything where the condition was better than what a standard age-based schedule assumes. Insurers expect some back and forth here. Supplementing a claim with corrected information is a normal part of the process, not a confrontation.
Where disagreement often lands is the line between normal wear and the damage itself. Depreciation is meant to account for age and use up to the date of loss, not to double up on damage caused by the event you're claiming. If water ruined flooring that had five years of normal life left, the payout should reflect five years of wear, not treat the flooring as though it was already failing. An estimate that depreciates heavily on an item that was in good condition right before the loss is worth pushing back on. Most insurers have an internal appraisal or review process built for exactly that disagreement.
None of this moves fast on its own. Depreciation disputes get resolved by someone providing documentation. A contractor's assessment, photos from before the loss, receipts for recent repair or replacement work all carry more weight than asking the insurer to reconsider without backup. If the adjuster's number still doesn't move after you've sent that, check the policy for an appraisal clause. That clause lets you bring in your own estimator and trigger a formal process for resolving the dispute. Adjusters don't typically bring it up on their own, so you may need to ask for it directly.
Before you accept the check
Find the loss settlement section in your policy and check whether it calls the withheld amount recoverable or nonrecoverable, and note the deadline for submitting proof of completed repairs.
