What is the difference between ACV and RCV? What are all of these numbers?

These two terms confuse nearly every homeowner — but understanding them is key to knowing how much you’ll actually receive.

ACV (Actual Cash Value) is the depreciated value of your damaged property — basically what it’s worth today, not what it costs to replace.

RCV (Replacement Cost Value) is the full amount needed to rebuild or replace the damaged area with new materials.

When your claim is first approved, your carrier usually pays you the ACV amount — a partial payment. The depreciation (the difference between ACV and RCV) is withheld until the work is completed. That’s where many homeowners get stuck — they don’t know how to recover that final check.

Faraday takes care of the entire process for you. We handle the repairs, submit all completion photos, invoices, and required documentation to your carrier, and trigger the release of your recoverable depreciation. You don’t have to make extra calls, send forms, or worry about getting paid.

Our goal is simple: ensure you receive every dollar owed under your policy. With Faraday, the ACV/RCV confusion disappears — you’ll know exactly what’s covered, when it’s paid, and how we’ll handle it on your behalf. We make sure nothing slips through the cracks.