# Replacement cost value

What it costs to replace the item with a new one of like kind and quality, usually paid in two instalments with the depreciation released after the work is

> Source: https://servpronorhfremont.com/glossary/rcv/
> Last reviewed: 2026-08-22

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# Replacement cost value

This applies across all four perils: water, fire and smoke, mold, and biohazard.

 
What it costs to replace the item with a new one of like kind and quality, usually paid in two instalments with the depreciation released after the work is done. The term appears constantly in scopes of work and in policy language, and its technical meaning is narrower than the everyday use of the word.
 

## Also called # Link to this section

 
- RCV

- replacement cost

 

## Where to read more # Link to this section

 
- Water categories and what must be removed

 

 

## Related questions

 - The first hour after any loss
- What your policy covers
- What to photograph and log
- Glossary
 
 
 

## Sources

Every source cited on this page

 - T1 Policy Terms and Coverage — FEMA / NFIP (accessed 2026-08-22)

- T1 State insurance departments — NAIC (accessed 2026-08-22)
 
 
 Written by: PLACEHOLDER — Restoration Reviewer Reviewed by: PLACEHOLDER — Claims Reviewer Last reviewed: 2026-08-22