Replacement Cost Value (RCV)

Definition

Replacement Cost Value (RCV) is an insurance valuation method that pays to replace damaged property with new items of like kind and quality, without deducting for depreciation. RCV policies provide more comprehensive coverage than ACV policies. Many RCV policies pay ACV initially, then pay the depreciation amount (recoverable depreciation) after repairs are completed and receipts are submitted. RCV coverage helps ensure property owners can fully restore their property.