Your Claim Check Is Built Long Before It Arrives.
ACV and RCV are not just acronyms. They change the math of a claim check and the timing of what you get paid.
Read More →Replacement cost value (RCV)
Direct answer
Replacement cost value reimburses full rebuild costs after repair, which increases expected loss and premium.
Why it changes price
- RCV keeps more roofs eligible for replacement cost payments.
- Longer RCV periods increase carrier exposure.
- RCV can reduce post-loss cash shock even when premium is higher.
Decision rule
If you cannot fund depreciation, RCV is worth the premium. If you can, compare ACV.