Home & Property

Replacement Cost Value (RCV)

The cost to replace lost property with new items of similar kind and quality — no depreciation.

Last reviewed: May 2026 · Editorial methodology

Definition

The cost to repair or replace damaged property with new materials of similar kind and quality at current prices, without any deduction for depreciation. RCV coverage is more expensive than ACV but provides much better protection after a major loss. Most policies pay ACV up front, then release the depreciation 'holdback' once you complete repairs and submit receipts — keep records of every expense.

Where this term matters

Home Insurance →Renters Insurance →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Actual Cash Value (ACV)The depreciated value of property at the time of loss — what your insurer pays minus age and wear.DepreciationThe reduction in value of property over time due to age, wear, and obsolescence, used to calculate actual cash value settlements.Dwelling CoverageCoverage A on a homeowners policy — pays to repair or rebuild your home's physical structure.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

Get Insurance Updates

Occasional updates on insurance rules, coverage changes and new guides — and ways to save.

  • ✓State-specific insurance rule changes
  • ✓Seasonal enrollment deadline reminders
  • ✓Expert tips to lower your premiums
  • ✓New coverage options in your state

Free forever. Unsubscribe with one click. No spam, ever.

Important Disclaimer

This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.

← Back to Insurance Glossary (355 terms)