Property Damage Claim Value Estimator
Estimate the net payout for a property damage insurance claim using actual cash value (ACV) or replacement cost value (RCV) methodology, accounting for depreciation, deductible, and policy limits.
Formulas Used
Actual Cash Value (ACV):
ACV = Repair Cost × (1 − Depreciation Rate)
Coinsurance Penalty (if coverage limit < required coverage):
Coinsurance Factor = Coverage Limit ÷ (Property Value × Coinsurance %)
Adjusted Loss = Base Value × Coinsurance Factor
Net Payout:
Net Payout = MIN( MAX(Adjusted Loss − Deductible, 0), Coverage Limit )
Replacement Cost Value (RCV): No depreciation is deducted. The insurer pays the full repair/replacement cost (minus deductible and subject to coverage limit). Many insurers pay ACV first, then release the depreciation holdback after repairs are completed.