Actual Cash Value (ACV)

The TDI guide describes actual cash value as replacement cost minus depreciation. Depreciation reflects age, wear or other factors used in the valuation process; the insurer must explain the method applied to your claim.

What to ask

Check whether ACV applies to the dwelling, roof, belongings or only certain categories. The deductible and policy limits still matter, so the payment may be less than the full replacement bill.

Ask whether an initial depreciated payment can be supplemented after replacement under your contract. Do not assume that possibility exists under every ACV provision.

See replacement cost versus ACV and roof coverage.

Sources & review status

Prepared Oct 14, 2026 • Unapproved draft

Editorial draft prepared October 14, 2026. Not yet approved by an insurance or legal reviewer. These sources explain general concepts; your policy, endorsements, insurer and state rules control your coverage.

Reference materials

• Texas Department of Insurance — Home insurance guideRetrieved and reviewed October 14, 2026. Texas consumer guidance; used for general policy concepts, with Texas-specific examples identified rather than generalized.

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