Replacement cost value (RCV) is a product at 100 percent, with no use or diminished life span. Actual cash value (ACV) is the use (or life left) of a product after a reduction for depreciation.

What RCV means?

What Is Replacement Cost Value? Replacement cost value (RCV) is the amount it costs to replace your property with new property, without deducting for depreciation.

Is ACV or RCV better?

Actual cash value (ACV) policies typically have lower premiums than RCV policies, and for good reason: they provide less in compensation when a claim is made. … Depreciation is key in ACV claims, because an item can lose thousands in value depending on the condition it was in before the loss.