What Is RCV vs ACV in Home Insurance?
RCV pays what rebuilding costs today, ACV subtracts depreciation for age and wear. Your policy says which one applies.
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How RCV and ACV change your payout
If your policy pays replacement cost value, the insurer figures what repairs or rebuilding costs at today's prices, then pays that. Often it comes in two checks, an initial payment based on actual cash value, then the rest once the work is done and you show receipts. If your policy pays actual cash value, depreciation comes off the top for the age and wear of what was damaged. A ten-year-old roof gets paid out as a ten-year-old roof, not a new one, and that's the only check you get. Some policies pay RCV on the house itself but ACV on the roof alone, so check your declarations page for separate roof language. The adjuster's worksheet should show the depreciation deducted and how it was calculated, line by line.
If your roof claim came back lower than expected, an ACV payout holding back depreciation is likely why, and that gap is set by your policy, not by this one loss. Policies vary on how they treat roofs, how much depreciation they apply, and whether you can recover the rest later. Comparing what other policies offer here can show whether a different one would have paid this claim differently.
How to recover the depreciation an ACV check held back
If your policy is RCV with a recoverable depreciation clause, the money held back in the first check isn't gone. It's waiting on proof that the repair or replacement actually happened. You collect it by doing the work, keeping the invoice or receipt, and sending it to the insurer along with a request for the second payment. There's usually a window for this, often a year or two from the date of loss, and that deadline is in your policy, not set by the adjuster who wrote your estimate.
Not all depreciation is recoverable. Some policies, and some endorsements added to lower the premium, make the holdback nonrecoverable, meaning that first check is the only money coming regardless of what you spend on repairs. The declarations page or the endorsement list will say which kind you have. If it doesn't say recoverable depreciation anywhere, assume it isn't, and ask the insurer directly before you count on a second check.
If you already made the repairs before filing for the second payment, send the receipt as soon as it exists. Insurers don't go looking for finished work, they wait for you to tell them it's done. If the invoice is less than the estimated repair cost, the payment is usually based on the lower of the two, so keep the paperwork even if the job came in under budget.
If the claim was denied outright rather than underpaid, the letter should state a reason tied to a specific policy exclusion or condition, not just a dollar figure. Compare that reason against what your policy actually excludes. Denials based on a misread of the damage, a missed inspection detail, or a condition that doesn't apply to your type of loss are often reversed when you ask for a reinspection or send your own contractor's estimate. Every state gives you a way to file a complaint with the insurance department if the denial still doesn't hold up, and that path exists outside the insurer entirely.
What if the adjuster's estimate looks too low
An adjuster's estimate is one person's read on repair costs, based on a software program and a set of unit prices for materials and labor in your area. It isn't a fixed number. If a contractor you trust comes back with a higher bid for the same scope of work, that difference is worth raising with the insurer directly, in writing, with the contractor's estimate attached.
Price is only part of it. Check whether the adjuster's estimate missed damage altogether. A roof claim might account for the shingles but skip flashing, gutters, or interior water staining that showed up after the fact. Supplements, meaning additional items added to an estimate after the first inspection, are routine and most insurers have a process for submitting them. Photos of the missed damage, dated and clear, make the supplement easier to approve.
If the gap comes down to pricing rather than missed scope, ask the adjuster what unit prices and software they used, and whether local contractor quotes were part of the comparison. Some insurers allow a reinspection if you present new evidence, like your own contractor walking the property with the adjuster. This doesn't always change the outcome, but it puts your numbers in front of the person who controls the payout instead of just in your file.
If the gap stays wide after a supplement and a reinspection, some states allow an appraisal process written into the policy itself. Each side picks an appraiser, the two appraisers pick a neutral umpire, and the umpire's decision on the dollar amount is usually binding. It costs money since you pay your own appraiser, so it tends to make sense only when the disputed amount is large enough to justify it. Your policy will say whether this option exists and how to invoke it.
Before you accept the number
Check your declarations page for the word recoverable next to depreciation. If it's there, keep every repair receipt. If you're unsure which payout type applies to your loss, compare policies now before the next renewal decides it for you.
