Replacement Cost Value

Replacement Cost Value is the gold standard for insurance payouts. It pays the actual cost to replace your damaged property with a brand-new version of ‘like kind and quality,’ without any deduction for depreciation. Given the volatility in lumber and labor prices, RCV is the only way to ensure you can truly rebuild after a disaster. While RCV policies have slightly higher premiums than Actual Cash Value policies, the difference in claim payouts can be hundreds of thousands of dollars.