ACV vs RCV, and the calculator

When you file a home insurance claim, what you get paid depends on which valuation method your policy uses.

Actual cash value (ACV) is the depreciated value of your item today. A sofa you bought for $1,200 five years ago might net you $480.

Replacement cost value (RCV) is what it costs to buy a comparable new item right now. That same sofa might cost $1,400 to replace — and an RCV policy would pay closer to that.

Most standard homeowner policies default to ACV. RCV coverage costs more in premiums but leaves a smaller gap on a real claim.

Why the gap matters

With an ACV policy, you're on the hook for the difference between the depreciated payout and what you actually spend replacing things. On a whole-household claim — fire, flood, theft — that gap compounds across appliances, electronics, and furniture.

Use the calculator

The ACV vs RCV calculator lets you model your own household. Start from a household preset, then adjust the item list to match what you own. The calculator shows the total replacement cost, what an ACV policy would actually pay, and the dollar gap — broken down by item so you can see where you'd lose the most. There's also a slider to project what happens as your stuff ages.

Good to know

• The depreciation rates in the calculator come from documented insurance industry schedules. They're a reasonable estimate, not your carrier's actual schedule.
• Your insurer's adjuster uses their own tables, which may differ.
• Some policies have sub-limits (jewelry, electronics, cash on hand) that cap payouts below both ACV and RCV. Check your declarations page.
• See Build an insurance report to document your inventory before you need it.