What Is Replacement Cost vs Actual Cash Value in Florida?
The difference in one sentence
Replacement Cost (RCV) pays what it costs to replace the damaged property today, without deducting for depreciation. Actual Cash Value (ACV) pays replacement cost minus depreciation. On a 12-year-old roof damaged by a hurricane, an RCV settlement might pay $32,000 and an ACV settlement might pay $11,000 — for the same physical loss. On 30A, where construction costs run $400–$800 per square foot, the RCV/ACV choice is the difference between rebuilding and being underinsured by six figures.
Where Florida policies hide ACV settlements
Most Florida HO-3 policies are written with RCV on the dwelling (Coverage A) by default. But several common endorsements quietly switch parts of the policy to ACV: roof ACV endorsements (now widely used on Florida policies for shingle roofs over a certain age), personal property ACV (vs RCV personal property), and ACV on detached structures or screen enclosures. The most painful surprise on 30A after a hurricane is a homeowner who thought they had "full replacement cost" but had an ACV roof endorsement that paid out 30 cents on the dollar. Always read the endorsements page, not just the declarations.
Florida's roof ACV reality after 2022 reforms
After Florida's 2022 and 2023 property insurance reforms (SB-2A, SB-4D), carriers are allowed to write roofs on an ACV basis when the roof is past a certain age — typically 10 to 15 years. On older Grayton and Seaside cottages this is now common. The premium savings are real (often $400–$1,000 a year) but the claim consequences are severe in a wind event. Owners with 18-year-old shingle roofs should weigh ACV against either replacing the roof early or moving to a carrier that still offers RCV.
Personal property: the second hidden choice
Coverage C (personal property) defaults vary by carrier. Some Florida policies default Coverage C to RCV; others default to ACV with an RCV endorsement available for an extra $100–$300 a year. For a 30A vacation rental with furnished living, a kitchen, electronics and outdoor furniture, the difference between an RCV and ACV settlement on a contents loss is easily $20,000–$60,000. Always confirm Coverage C is on an RCV basis if you have meaningful personal property exposure.
When ACV actually makes sense
ACV is not always wrong. On a rarely-used storage outbuilding, a 30-year-old detached garage, or personal property that turns over fast, ACV may be the right call to save premium. The mistake is defaulting to ACV across the policy without thinking through what happens at claim time. A good agent will walk through each coverage and recommend RCV or ACV intentionally — not by accident.
Audit your RCV vs ACV with Nsure Asset
Nsure Asset reviews every endorsement on every 30A policy at renewal — including hidden ACV provisions on roof, screen enclosures and personal property. Call 850 585 2727 or request a quote at nsureasset.com and we will mark up your declarations page so you know exactly how each line settles.