The math
- RCV (Replacement Cost Value) = cost to replace like-kind-and-quality new
- Depreciation = age/wear adjustment
- ACV = RCV - Depreciation
Why it matters
Florida carriers typically pay ACV first, then release the "recoverable depreciation" (the gap between ACV and RCV) after you actually repair and submit invoices.
When depreciation is disputed
Carriers sometimes apply depreciation to non-depreciable items (debris removal, permit fees). This is a common fight.