Homeowners

What is the difference between replacement cost and actual cash value homeowners coverage?

Replacement cost (RCV) coverage pays to rebuild your home and replace belongings at today's prices without deducting depreciation. Actual cash value (ACV) pays the depreciated value -- what your 15-year-old roof or 10-year-old appliances are worth today, not what they cost to replace. The difference after a total loss can be substantial. Most lenders require replacement cost on the dwelling. Replacement cost on personal property is usually optional but often worth the added premium given how quickly electronics and furniture depreciate.

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What is the difference between replacement cost and actual cash value homeowners coverage?

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