Actual Cash Value (ACV) is the depreciated value of your damaged property at the time of the loss — what insurers consider its current market worth, not what it costs to replace.
Most insurance policies in storm-damage claims pay the ACV up front. If your policy is a Replacement Cost Value (RCV) policy, you can typically recover the rest (the "depreciation holdback") after you complete the repairs and submit proof.
How it's calculated
ACV ≈ Replacement Cost − Depreciation. Depreciation is based on the age and condition of the damaged item.
Example
A 12-year-old asphalt shingle roof costs $20,000 to replace. The insurer applies $7,500 in depreciation. The ACV is $12,500. After your $2,500 deductible, your initial payout is $10,000.
Knowing the difference between ACV and RCV is the single biggest lever you have when reviewing your insurance Statement of Loss.