Replacement value vs. actual cash value (ACV)

Insurers talk about two different values for the same item:

• Replacement value (replacement cost): what it would cost to buy the same or a similar item new today.
• Actual cash value (ACV): replacement value minus wear and tear. A five-year-old TV is worth less than a new one.

Which one you are paid depends on your policy. Many policies with replacement-cost coverage still pay ACV first and the rest (the "holdback") after you actually replace the item. Your declarations page or your agent can tell you which you have.

How Claimfrog estimates ACV

Claimfrog uses the same approach insurers typically use:

1. Start from the item's replacement value (times its quantity).
2. Work out its age from the Date of Purchase (or the year it was made, if that's all you have).
3. Apply straight-line wear over a typical life for its category. For example, electronics over 5 years, furniture and appliances over 10 years, clothing over 4 years.
4. Never go below 20% of replacement value.

Jewelry and watches and art and collectibles don't depreciate. The calculation is done by fixed rules, not AI, so the same item always gets the same number.

Where to see it

• Depreciation › Insurance (ACV) shows every item's estimated ACV, with totals and an export to PDF or CSV. Use Show only these to list items that still need a purchase date.
• Each item shows its Est. claim value (ACV) under its value.
• The claim package PDF includes the ACV estimate.

Good to know

• Items without a purchase date can't be estimated. Add the date (even an approximate one) to include them.
• This is an estimate. Your insurer's own depreciation schedule and your policy decide the actual payout.
• Business owners: for tax book value, see Depreciation schedules for businesses. It's a different calculation.