Replacement Cost Value (RCV)
Insurance coverage that pays for the full cost of replacing damaged property without deducting for age or depreciation.
Why RCV Matters
With RCV coverage, when your roof is damaged, the insurance company pays what it actually costs to rebuild—no depreciation deduction. This is the coverage you want.
RCV costs more in monthly premiums than ACV, but the difference is worth it when damage happens.
The Real Cost Difference
If your roof needs $12,000 in repairs and you have ACV coverage, the insurance company might only pay $7,000 (assuming depreciation). You pay $5,000 out of pocket.
With RCV, the insurance pays $11,000 (after your deductible). You pay your deductible only.
How to Get RCV
Call your insurance agent and ask if your policy has RCV or ACV. If it's ACV, ask to switch to RCV. They'll increase your premium slightly (usually 5-15%), but you'll be protected.