Deductible vs RCV: When ACV Plus Cash Reserve Wins
Homeowners compare premium by changing two levers at once: deductible and settlement method. That makes the math look noisy, but the tradeoff is simple.
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.