Recoverable Depreciation Calculator

See the actual cash value paid now and the recoverable depreciation held back until repairs are done.

For policyholdersFor adjusters
Your estimate
Actual cash value (paid first)$21,000
Recoverable depreciation (held back)$9,000

On a replacement-cost policy, the held-back depreciation is released after you complete the repairs and submit proof, usually within a deadline. On an actual-cash-value policy it is not recoverable. Confirm your policy type and deadline.

What it is

This calculator splits a replacement-cost estimate into the two amounts that matter on a claim: the actual cash value the insurer pays first, and the recoverable depreciation held back until the work is finished.

You enter the replacement cost value and the depreciation percentage the insurer applied, and it returns the actual cash value paid up front and the depreciation you can recover after repairs.

Why it matters

Many policyholders think the first check is the whole settlement. On a replacement-cost policy it often is not. A large slice is held back as recoverable depreciation, and it is only released once you complete the repairs and submit proof.

Knowing both numbers protects you two ways. It stops you from under-settling because the first payment looked low, and it reminds you to finish the repairs and file for the held-back amount before the deadline, so you do not leave money on the table.

How to use it

  1. Enter the replacement cost value, the full cost to repair or replace the damage today. You will find it on the insurer’s estimate.
  2. Enter the depreciation percentage the insurer applied for age and wear. The estimate usually lists it per line item or as a total.
  3. Read the actual cash value you are paid first and the recoverable depreciation that is held back.
  4. After repairs, submit your final invoices and photos to claim the recoverable depreciation before your policy deadline.

Frequently asked questions

What is recoverable depreciation?
Recoverable depreciation is the amount an insurer holds back for age and wear at first payment and then releases to you after you complete the repairs and submit proof. It only exists on replacement-cost policies.
What is the difference between ACV and RCV?
Replacement cost value (RCV) is what it costs to repair or replace the damage today. Actual cash value (ACV) is the RCV minus depreciation. On a replacement-cost policy the insurer usually pays ACV first, then the recoverable depreciation after repairs.
How do I actually get the depreciation released?
You complete the repairs, then submit documentation such as final invoices and photos to show the work was done. The insurer then releases the held-back depreciation up to the RCV, usually within a deadline stated in the policy.
Can depreciation ever be non-recoverable?
Yes. On an actual-cash-value policy the depreciation is not recoverable, so the held-back amount is money you do not get back. Check your declarations page to see whether your coverage is RCV or ACV.

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Educational estimate only, not financial, insurance, or legal advice, and not a determination of coverage. Figures are rounded and depend on your policy and state rules. Confirm any number with your public adjuster and your state’s department of insurance.