ACV & depreciation calculator
See how depreciation turns replacement cost into your first check, and how much should come back once repairs are done.
RCV, ACV and recoverable depreciation, explained
Replacement cost value (RCV) is what it costs today to repair or replace damaged property with materials of like kind and quality. Actual cash value (ACV) is usually RCV minus depreciation for age and wear. Most Texas replacement-cost homeowners policies pay ACV first and the withheld depreciation — “recoverable depreciation” or the “holdback” — once the work is completed, within the time the policy allows. Policies or endorsements that value roofs at ACV never pay that depreciation back.
The straight-line method
depreciation = RCV × (age ÷ life expectancy), up to any cap
Estimating software applies depreciation line by line, and carriers often depreciate labor as well as materials. If your estimate depreciates items that don’t wear out, uses a life expectancy far shorter than the material’s real life, or applies depreciation to code-upgrade items, those are worth questioning.
Where interest comes in
Recoverable depreciation becomes payable when the policy’s conditions are met — usually proof the repairs were done. If the carrier then sits on it, that is another payment with a deadline. Model it as its own component in the statutory interest calculator.
Related tools
Statutory interest calculator
§542.060 interest on late payments, partial payments and supplements, at 18% or the floating rate.
Open toolPublic adjuster fee calculator
What a Texas public adjuster can charge (10% cap) and what you net.
Open toolWind & hail deductible calculator
Percentage deductibles in dollars, and what a storm claim actually pays.
Open toolThink your claim was paid late? Let’s run the timeline.
Send us your claim file for a free review. We rebuild the dates, calculate the statutory interest and tell you plainly whether there is anything to recover. No upfront cost. Texas claims only.