ACV vs RCV: How to Recover the Depreciation Your Carrier Withheld
On a replacement-cost policy your first check is only part of what you are owed. Here is how the withheld depreciation works and how to get it back.
Last reviewed July 2026. General guidance, not legal advice.
The single most common way Florida policyholders leave money on the table is not claiming the recoverable depreciation on a replacement-cost policy. Understanding the ACV-to-RCV gap is worth real dollars.
ACV vs RCV
Actual Cash Value (ACV) is replacement cost minus depreciation for age and wear. Replacement Cost Value (RCV) is the full cost to replace with new material of like kind and quality, with no depreciation deducted. Your declarations page states which one your dwelling and contents are covered at.
How recoverable depreciation works
On an RCV policy, the carrier usually pays ACV first and holds back the depreciation. That withheld amount is "recoverable": you get it once you actually complete the repairs and submit proof of the cost. Florida Statute 627.7011 governs replacement-cost dwelling losses.
How to recover it
- Confirm on your declarations page that you have replacement cost (RCV) coverage.
- Complete the repairs or replacement.
- Submit the final invoices and proof of completed work.
- Claim the withheld depreciation; challenge any depreciation that was excessive or applied to labor.
Official sources
ACV vs RCV: How to Recover the Depreciation Your Carrier Withheld FAQs
On a replacement-cost policy the carrier pays ACV (replacement cost minus depreciation) first and withholds the depreciation. You recover it after completing repairs and submitting proof, under Fla. Stat. 627.7011.
Yes. Over-depreciation, such as depreciating labor or aging nearly new materials, can be challenged with documentation of the property’s true age and condition.
Want a professional to handle this for you?
Foremost Public Adjusters has recovered millions for policyholders across South Florida. If your claim was denied, delayed, or underpaid, we will review it for free. No recovery, no fee.