Let’s say that 2018 Macbook Air is stolen, and you file a claim. Your insurance company has replacement cost coverage, and if your claim is approved, you could eventually get a roughly $800 payout from your insurer (minus your deductible, of course).
You can think about replacement cost coverage like this:
$480 (ACV) + $320 (recoverable depreciation) = $800 (replacement cost).
In other words, the “recoverable depreciation” is the difference between the Actual Cash Value and Replacement Cost.