Difference between ACV and Replacement Cost

public adjuster surveying home damage

When your property is damaged, there are many factors you need to take care of. Some factors are as follows: the safety of your family, assessing the damage of your property, and finally, how to replace your damaged property. When you begin the process of fixing and replacing your damaged property, you should meet with an experienced and trustworthy public adjuster.

However, before you meet, it is important to know some things about your homeowners insurance. One thing to know about is the difference between ACV (Actual Cash Value) and Replacement Cost. Read on to learn more!


This policy covers your home and possessions for their market value before they were damaged. Since your items are most likely used, depreciation will be a factor in how much money you receive. One way depreciation is calculated is by the portion of its life expectancy. For example, your roof may have a life expectancy of 30 years. The claims adjuster will see how old the roof is at the time of the incident and calculate the expense then. If you’ve had the roof for 15 years or so, the ACV will be half of the original cost.

Replacement Cost

The replacement cost of your possessions is based on the cost you initially paid. If the item or possession that needs to be replaced is no longer available, you will be reimbursed the equal amount paid or with an item of similar costs.

If your home has been damaged in a natural disaster, let Valley Adjuster’s experienced capital claims public adjusters help you. Give us a call at (800)658-8814, today.