Short answer: Actual cash value (ACV) is replacement cost minus depreciation. Many replacement cost policies pay ACV first and the rest after you repair or replace. California gives you at least 12 months to collect the rest (36 months after a declared emergency), Oregon at least 12 months (24 after a declared emergency), Colorado at least 365 days after living-expense coverage ends, and Minnesota requires your declarations page to say "nonreplacement cost" if contents aren't covered at replacement cost. Florida requires at least ACV up front on a dwelling and full replacement cost without holdback on a total loss.
This matters for roof and hail claims too: if your roof is covered at ACV, an older roof's payout can be much lower than the cost of a new one. Check how your policy settles roof losses.
The table
| State | Rule | Deadlines and details | Source |
|---|---|---|---|
| Arkansas | Property policies may allow "expense depreciation" (including materials, labor and services) when figuring actual cash value, but only if the policy gives notice, in a form the Insurance Commissioner approves, that it may be deducted | If it's applied, the insurer must explain in writing how it was calculated. The Insurance Department said it can't be applied to policies already in force when the law took effect (Aug. 1, 2017), only at renewal or a new policy | Ark. Code § 23-88-106 (Act 279 of 2017); AID Bulletin 10-2017 |
| California | Replacement cost policies pay ACV first, then the difference up to full replacement cost once you repair or rebuild | You get at least 12 months from the first ACV payment to collect full replacement cost, or 36 months after a declared state of emergency, plus 6-month extensions for good cause. After a state-of-emergency loss, proof of loss can't be required sooner than 100 days | Cal. Ins. Code §2051.5 |
| Colorado | Replacement cost homeowners policies must include at least 12 months of additional living expense coverage; insurers must offer extended replacement cost and law-and-ordinance coverage | You get at least 365 days after ALE ends to replace property and collect recoverable depreciation. After a governor-declared wildfire total loss, at least 36 months to submit replacement receipts, with two possible 6-month extensions | C.R.S. §10-4-110.8 |
| Florida | Dwelling on replacement cost: the insurer must first pay at least ACV less the deductible, then pay the rest as work is performed and expenses are incurred | Total loss of a dwelling: replacement cost without holdback of depreciation. Personal property: insurers must offer a no-holdback replacement cost option and may also offer one that pays ACV until you replace | Fla. Stat. §627.7011(3) |
| Illinois | On actual cash value residential fire policies, ACV = replacement cost at time of loss minus depreciation, if any | On request, the insurer must give you the worksheet showing every depreciation deduction, including age, condition and expected life | 50 Ill. Adm. Code 919.80(d)(8) |
| Kentucky | On replacement cost policies you don't pay for betterment, and if replaced items don't reasonably match in quality, color and size, the insurer must replace all items in the area for a uniform look | On ACV residential policies, ACV = replacement cost minus depreciation; if the policy says so, depreciation can include labor, overhead and profit. On request you get the depreciation worksheets | 806 KAR 12:095 §9 |
| Louisiana | Property policies (other than auto) may allow depreciation, which can include materials, labor and services, but the policy must give notice in a commissioner-approved form that depreciation may be deducted or withheld | If depreciation is applied, the insurer must explain in writing how it was calculated, and it must be reasonable, based on objective criteria and a subjective assessment that includes the property's actual condition before the loss | La. R.S. 22:1892(B)(6) |
| Minnesota | Where an insurer offers replacement cost on a building, it must cover repair or rebuilding to the minimum code required by state or local authorities, and can't require rebuilding at the same spot if zoning forces relocation | If a homeowners policy doesn't pay replacement cost for personal property, the declarations page must say "nonreplacement cost" | Minn. Stat. §65A.10 |
| Oregon | If the policy requires repair or replacement to collect full replacement cost, you get at least 12 months from the first ACV payment, or 24 months for a primary home lost in a declared emergency or a fire under a conflagration order | Extensions in 6-month steps up to 24 months total (12-month case) or 36 months total (emergency case) for unavoidable delays | ORS 742.270(2) |
| Washington | Labor needed to repair, rebuild or replace covered property can't be depreciated when figuring the payment | Only the labor built into the cost of manufactured materials can be depreciated (rule effective Jan. 1, 2022) | WAC 284-20-010(4) |
We list only states where we read the official text ourselves in October 2026. A state that is missing is not covered here; check that state's statute or insurance department.
How to protect your claim payment
- Read your declarations page for "replacement cost" or "actual cash value," and check for a separate roof settlement schedule.
- Write down your deadline to collect recoverable depreciation, and ask for an extension in writing if you're delayed.
- Keep every receipt and invoice for repairs and replacements.
- Ask about extended replacement cost and code upgrade coverage at renewal.
Related: Texas roof insurance, hail deductibles and ACV and Colorado hail damage claims.
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Methodology
Each row was read from the official source linked in the Source column in October 2026. This is general information, not legal advice. See also the state insurance rules hub.
Frequently asked questions
What is the difference between replacement cost and actual cash value?
Actual cash value is the replacement cost minus depreciation. Replacement cost pays to repair or replace without that deduction, up to your limit, often after you complete the work.
How long do I have to collect recoverable depreciation in California?
At least 12 months from the first ACV payment, or 36 months for a loss tied to a declared state of emergency, with 6-month extensions for good cause (Ins. Code §2051.5).
Does Colorado set a deadline for recoverable depreciation?
Yes. Insurers must allow at least 365 days after additional living expense coverage ends, and at least 36 months after a governor-declared wildfire total loss.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.