Two acronyms show up on every insurance settlement, and mixing them up is the fastest way to think you're short money when you're not. Here's the plain version after 26 years of seeing it confuse good managers.
RCV — Replacement Cost Value
RCV is what it costs to replace the damaged property with new materials and labor, at today's prices. It's the full repair number — the one your contractor bids against.
ACV — Actual Cash Value
ACV is RCV minus depreciation — the wear-and-tear the item had before the loss. Carriers often pay ACV up front and release the remaining depreciation (the 'recoverable depreciation') after the work is done and documented.
Why it matters
If you compare contractor bids to the ACV check you received, every bid will look unaffordable — because you're comparing full repair cost to a depreciated payout. Compare bids to RCV, plan cash flow around getting the depreciation released, and the picture is honest. BidsScores anchors insurance projects to the settlement so your real out-of-pocket exposure is clear.