Actual cash value (ACV) is one of the two ways property insurance values what you lost. ACV pays what the damaged item or material was worth at the moment of loss — its replacement cost minus depreciation for age and wear. Replacement cost value (RCV) pays what it costs to actually replace it new, without the depreciation deduction.
The distinction shows up on real claims as the difference between checks. On an RCV policy, many carriers first pay the ACV amount, then release the withheld depreciation — called recoverable depreciation — after the repairs are completed and documented. A ten-year-old carpet destroyed by a water loss might be worth a fraction of its replacement price as ACV; the rest arrives when the new carpet is installed and receipts are submitted.
Where homeowners get hurt is not knowing which valuation their policy uses — some policies, especially for roofs, pay ACV only, meaning depreciation is never recovered. That's a policy-reading question for your agent, and worth asking before storm season rather than after a loss.
For the claim itself, the practical rule is documentation: completing repairs with a contractor who documents line-by-line to the carrier's scope is what releases recoverable depreciation without friction. It's a routine part of how Summit closes out insurance work.