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What is replacement cost vs. actual cash value?

Replacement cost (RCV) pays what it costs to replace a damaged item with a new equivalent today, with no deduction for age or wear. Actual cash value (ACV) pays the depreciated value of the item at the time of loss. A ten-year-old sofa that cost $1,200 might have an ACV of $300 but a replacement cost of $1,500. RCV coverage costs more in premium but pays significantly more on a claim. Most homeowners should carry replacement cost on both the dwelling and personal property.

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Olive Cover

Independent insurance for families, homeowners, and businesses. We work for you, not one insurance company.

(678) 888-1011 · 888-OLIVE10 hello@olivecover.com

6470 East Johns Crossing, Suite 160,
Johns Creek, GA 30097 · office visits by appointment only

Mon-Fri 9am-6pm ET · phone, video, or email

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Olive Insurance Services, LLC dba Olive Cover. Licensed Georgia P&C Insurance Agency. Agency NPN: 22116940 | NPN: 2790083. 6470 East Johns Crossing, Suite 160, Johns Creek, GA 30097. Olive Cover is a brand of Olive Insurance Services, LLC, a subsidiary of Olive Financial Services, Inc. © 2026 Olive Insurance Services, LLC. All rights reserved.

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