Whats the difference between Replacement Cost (RC) and Actual Cash Value (ACV) settlement methods?
If you choose our replacement cost option,1 we will pay you the dollar amount it costs to replace your possessions today, without any deduction for depreciation. Actual cash value, by contrast, deducts for depreciation. Depreciation is the decrease in value of an object due to the wear-and-tear that comes with age. The policy requires you to replace the item with a like-kind quality item to recover the depreciation associated with your property.
