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What is Actual Cash Value (ACV) and replacement cost value (RCV)?

April 26, 2017actual acv cash value

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What is Actual Cash Value (ACV) and replacement cost value (RCV)?

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There are two types of coverages for your property. One is replacement cost coverage and the other is actual cash value. Replacement cost coverage provides for a damaged item to be replaced for what it costs today, at a fair market price of like, kind and quality, regardless of when it was purchased. Actual cash value provides for the compensation of the balance of the life expectancy of a damaged item. Your insurance company owes for only the unused portion of the balance of its life. Other parameters may also apply, your adjuster can explain this process better.