How the math works
Each row uses straight-line depreciation: age divided by expected life, multiplied by the replacement cost and capped at the maximum you pick. ACV is replacement cost minus that depreciation. Your first check is total ACV minus the deductible; the difference between RCV and ACV is what a replacement-cost policy typically releases after the work is done.
The labor setting
Some estimates depreciate the whole line item, labor included; others depreciate materials only. How that’s handled depends on the policy wording and the law that applies, and it has been argued in courts in several states. Use the labor menu to see how much the choice moves your first check, then ask the adjuster to explain the method used on your estimate in writing.
Life expectancies you’ll often see
| Item | Common range |
|---|---|
| Asphalt shingles | 20–30 years |
| Natural slate | 75 years or more |
| Vinyl siding | 30–40 years |
| Carpet and pad | 8–12 years |
| Interior paint | 8–12 years |
| Gutters (aluminum) | 20–30 years |
Don’t lose the holdback
Most replacement-cost policies set a window to finish repairs and claim the depreciation. The claim calendar builder puts that date in your calendar.
Questions about this tool
Is depreciation the same as a lowball estimate?
No. Depreciation is a normal part of how replacement-cost policies pay. The questions worth checking are whether the life expectancies, ages and cap are reasonable and whether labor was depreciated.
What if I never make the repairs?
Under most replacement-cost policies you keep the ACV payment, but the held-back depreciation is usually paid only after repair or replacement within the policy’s time limit.
Why does the tool ask for a cap?
Many estimates limit depreciation to a maximum percentage so that even very old items keep some value. If your estimate uses a different cap, choose it from the menu.