ACV vs RCV

Policies pay different amounts to fix or replace property (your home and personal items). Usually, you have to pay part of the cost yourself. That amount is called the deductible. After that, how much money you get from the insurance company depends on if the coverages you purchased pay “replacement cost value” (RCV) or “actual cash value” (ACV).

Actual Cash Value (ACV)

ACV is the amount to replace or fix your home and personal items, minus depreciation. Depreciation is a decrease in value based on things like age, or wear and tear.

Replacement Cost Value (RCV)

RCV is the amount to replace or fix your home and personal items.

Even if you purchased coverages that pay RCV, some types of property may only be paid at ACV. These may include:

• Roofs
• Other building property – appliances, wood fences, structures that are not buildings, awnings, carpeting, outdoor antennas and equipment; and
• Personal property – antiques, collectibles, memorabilia, items that cannot be replaced, and obsolete property that is stored or not being used.

*️⃣  Most companies pay you only part of the RCV first. You will have to prove that you repaired your home, or replaced or fixed personal items before you get the rest of the money.