Help i have replacement cost but they’re paying me acv… am i wrong? policy info below

Hi everyone, I have replacement cost on my policy, but the claims rep told me they’re paying out at ACV (actual cash value) with something about Recoverable Depreciation.

They said my policy limits the payout to the replacement cost, but that they still calculate it based on ACV first. I’ve looked over my policy, but I don’t see anything mentioning this. Am I misunderstanding something here?

They might not have explained it clearly. Usually, they pay the ACV amount first. Then, after you replace the item, you can submit receipts to claim the difference for the full replacement cost, keeping any policy sub-limits in mind.

@Torrin
Right. ACV and recoverable depreciation are separate.

ACV is the current value minus depreciation, and they pay that initially.

Once you replace the item and send in the receipt, you can get back the depreciation amount.

They don’t give full replacement up front because it might motivate people to cause a loss to cash out. Full replacement is paid only after you actually replace it.