Replacement Cost Value (RCV)
A claims method that pays the cost to rebuild or replace damaged property with like-kind-and-quality without deducting depreciation.
Quick answer
Replacement Cost Value (RCV): A claims method that pays the cost to rebuild or replace damaged property with like-kind-and-quality without deducting depreciation. Typical cost: 10–25% premium increase vs ACV..
Why it matters
RCV is the gold standard for dwelling and roof coverage; the modest premium increase pays for itself in one significant claim.
Typical cost
10–25% premium increase vs ACV.
Pros
- • Full replacement of damaged property
- • Best long-term protection
Cons
- • Higher premium
- • Often paid in two checks (depreciation held back until work done)
Common uses
- • Most modern HO policies' default; verify on yours
Alternatives
ACVExtended/Guaranteed replacement cost
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Frequently asked questions
- Is RCV worth the upcharge?
- Yes — especially for roofs, where ACV settlements are often half the actual replacement cost.
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Estimates and guidance are educational. Always confirm with a licensed local professional before making decisions.