Money & Pricing
ACV settlement
Accepting payment at Actual Cash Value (RCV minus depreciation) instead of replacing. If the policyholder elects an ACV settlement, they forgo the recoverable depreciation on the claim.
On a real claim
An ACV settlement is accepting payment at Actual Cash Value, replacement cost minus depreciation, instead of replacing the property. On a claim it means the policyholder forgoes the recoverable depreciation and takes the depreciated number as the final payment. What goes wrong: a contractor budgets the full replacement cost and the homeowner has already settled for ACV, leaving a gap no supplement can close. Check whether the claim was settled at ACV before you price the work.
Common questions
What does "ACV settlement" mean in Xactimate estimating?
Accepting payment at Actual Cash Value (RCV minus depreciation) instead of replacing. If the policyholder elects an ACV settlement, they forgo the recoverable depreciation on the claim.
Where does "ACV settlement" show up in a claim?
The term matters on estimates and scopes across the insurance restoration workflow. Browse the glossary for related terms.
Put this to work
ESXPress converts carrier scope PDFs into import-ready Xactimate ESX files — line items mapped to their real code, priced for import.
Start free — 5 conversions, no card →