Replacement Cost vs ACV Payout Compare Tool
Compare caller explicitly deductible-before-limit ACV/RCV scenarios with independent replacement-evidence gate; no insurer valuation default or legal recoverable-depreciation entitlement.
Description
Actual cash value (ACV) and replacement-cost scenarios differ by depreciation and replacement evidence.
Actual cash value (ACV) and replacement-cost scenarios differ by depreciation and replacement evidence. This calculation applies deductible before the limit.1, 2
The returned values include Caller acv payment minor, Caller replacement potential minor, Caller recoverable depreciation minor, Caller current evidence payment minor. The How section below explains the calculation, input rules and interpretation.
When to use Replacement Cost vs ACV Payout Compare Tool
Use Replacement Cost vs ACV Payout Compare Tool when you need to evaluate the supplied records under the calculation and evidence rules below. No automatic valuation, policy ordering inference or legal depreciation entitlement is supplied.
Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
How to use Replacement Cost vs ACV Payout Compare Tool and understand its results
- Prepare the observed policy, claim or quote evidence and independently verified policy tables. Monetary fields use integer minor units in one currency: for a currency with 100 minor units per major unit, enter 12345 for 123.45. One basis point is 0.01 percentage points, so 10000 basis points represents 100%.
- Enter callerReplacementCostMinor, callerVerifiedDepreciationMinor, callerDeductibleMinor, callerLimitMinor, callerReplacementEvidenceVerified using the field table and calculation rules, then run the tool.
- Read callerAcvPaymentMinor, callerReplacementPotentialMinor, callerRecoverableDepreciationMinor, callerCurrentEvidencePaymentMinor. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| callerReplacementCostMinor | Caller replacement cost minor | number | Required |
| callerVerifiedDepreciationMinor | Caller verified depreciation minor | number | Required |
| callerDeductibleMinor | Caller deductible minor | number | Required |
| callerLimitMinor | Caller limit minor | number | Required |
| callerReplacementEvidenceVerified | Caller replacement evidence verified | boolean | Required |
Enter integer money 0–10¹² each with depreciation at most replacement value and a replacement-evidence boolean. Return both payment scenarios, their difference as potential recoverable depreciation and the evidence-selected current scenario.
ACV=min(limit,max(0,replacement−depreciation−deductible)); RCV=min(limit,max(0,replacement−deductible)) Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| callerAcvPaymentMinor | Caller acv payment minor | number |
| callerReplacementPotentialMinor | Caller replacement potential minor | number |
| callerRecoverableDepreciationMinor | Caller recoverable depreciation minor | number |
| callerCurrentEvidencePaymentMinor | Caller current evidence payment minor | number |
{
"input": {
"callerReplacementCostMinor": 10000,
"callerVerifiedDepreciationMinor": 3000,
"callerDeductibleMinor": 1000,
"callerLimitMinor": 20000,
"callerReplacementEvidenceVerified": false
},
"output": {
"callerAcvPaymentMinor": 6000,
"callerReplacementPotentialMinor": 9000,
"callerRecoverableDepreciationMinor": 3000,
"callerCurrentEvidencePaymentMinor": 6000
}
}Limitations and assumptions
No automatic valuation, policy ordering inference or legal depreciation entitlement is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Roof Age Depreciation Payout Lookup: A roof-age schedule gives policy-specific depreciation. This scenario subtracts rounded depreciation and deductible before clipping payment at zero. For a complementary task, use Water Backup Endorsement Limit Checker: A water-backup endorsement may have a term limit already partly consumed. The current deductible reduces eligible loss before remaining-limit application.
Further background: Actual cash value and replacement cost coverage.
References
-
Actual cash value and replacement cost coverage — National Association of Insurance Commissioners
Similar or alternative tools
- Roof Age Depreciation Payout Lookup
A roof-age schedule gives policy-specific depreciation. This scenario subtracts rounded depreciation and deductible before clipping payment at zero.
- Water Backup Endorsement Limit Checker
A water-backup endorsement may have a term limit already partly consumed. The current deductible reduces eligible loss before remaining-limit application.