Handling the cost of replacement is a significant portion of what home insurance does. However, when considering a homeowners insurance policy, there are two ways your insurance company can cover your stuff: replacement cost value (RCV) or actual cost value (ACV). ACV is cheaper upfront but ...
Example of RCV:Now, let's consider the same scenario but with an RCV policy. In this case, your insurance company would cover the current market cost to replace your roof, irrespective of its age or original cost. So, if it costs $25,000 to replace your roof today, that's the a...
Actual cash value (ACV) accounts for depreciation to determine your car’s worth. Replacement cost value (RCV) is the amount it would cost to buy the same or similar vehicle. Auto insurance companies use ACV to determine payouts for a covered car. The money you receive may not be enough ...