Professional services
Insurance Actual Cash Value Calculator
Actual cash value after depreciation, and the gap against replacement cost cover.
Result
An estimating tool, not insurance advice and not a quote. Actual premiums are set by underwriting on factors no calculator sees: claims history, credit and loss data, exact location, construction, contract requirements and the insurer's own appetite. What cover you need is a question for a licensed broker who has looked at your situation. Insurers apply their own depreciation schedules by item category and the method varies. Replacement cost policies often pay actual cash value first and release the depreciation holdback only after the item is actually replaced and receipts are provided, which catches people who expected a single cheque.
Get a Free Business AuditQuestions
About this calculator
What is the difference between ACV and replacement cost?
Actual cash value pays what the item was worth allowing for age and wear. Replacement cost pays what a new equivalent costs. On a nine year old roof that difference is most of the claim.
Why did my replacement cost policy pay less than expected?
Most pay actual cash value up front and hold back the depreciation until the work is done and documented. It is called recoverable depreciation, and claiming it requires actually replacing the item.
The formula
actual cash value = replacement cost x (1 - age / useful life), floored at the retained minimum
Put this calculator on your site
Free to embed. Paste this where you want it to appear. It stays up to date automatically because it loads from BDEVY.
Please keep the attribution line. It is the only thing we ask in return.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.