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
Sources
Every source cited on this page
- T1Policy Terms and Coverage — FEMA / NFIP (accessed 2026-08-22)
- T1State insurance departments — NAIC (accessed 2026-08-22)