Generally, RCV insurance requires you to buy the replacement item and send the receipt to your insurer, at which point they will reimburse you. Some insurers may provide an initial lump sum upfront, but to get the full amount of the new item you purchased, you may need to prove that the...
Real-life Examples of ACV vs RCV Example of ACV:Let's say you have a 10-year-old roof that gets severely damaged in a storm. If you have an ACV policy, your insurance company will consider the roof's original cost and its expected lifespan, then subtract any depreciation due to i...
Actual cash value (ACV) policies typically have lower premiums than RCV policies, and for good reason: they provide less in compensation when a claim is made. The insurance term “actual cash value” is the amount that a lost item was actually worth, a result of subtracting any depreciation...