What is the difference between Acual Cash Value (ACV) and Replacement Cost (RC)?
ACV is the cost to replace a building or property with like materials and intended use, less depreciation. Most Business Auto policies cover an auto on an ACV basis and will pay the amount of the value of that vehicle at the time of loss. If you suffer a loss to a building, the loss will be paid with the age and condition factored into the payment. If you suffer a loss to used office furniture, you may prefer to be paid for new office furniture (RC) than to be compensated at the used furniture rate (ACV). Please refer to your policy for the exact terms of your policy.
