Replacement Cost Value (RCV)
Insurance Glossary
A claim settlement method that pays what it costs to replace damaged property with new items of similar kind and quality, with no deduction for depreciation. Insurers commonly pay the depreciated amount first and release the remaining recoverable depreciation once the repair or replacement is finished and documented. Replacement cost policies cost more than actual cash value policies, and some still apply depreciation to roof surfaces or to specific categories of property.
This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.
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