Claim words
Replacement cost (RCV)
What it costs to buy the same thing new today.
What it means for your money
Replacement cost ignores what you originally paid and ignores the item's age. It asks one question: to get an equivalent item now, what would you spend?
A replacement cost policy pays this in two parts — the used value first, the rest after you replace the item. That second part is the one people most often leave unclaimed, because nothing arrives to remind them.
Check your declarations page for RCV or ACVWhere the number comes from
Usually current retail for a like item. If the exact model is discontinued, it is priced against the nearest equivalent, which is a judgement you are allowed to disagree with.
See this on a real laptop
- Laptop, bought 2021 for $1,600
- That exact model, discontinued
- —
- Nearest current equivalent
- $1,500
- Replacement cost used for the claim
- $1,500
What you paid in 2021 does not set this number. The current equivalent does, and which equivalent gets picked is worth reading closely.
Replacement cost (RCV) sits next to actual cash value, recoverable depreciation and loss report. They tend to arrive together.
Guides that use this wordRecoverable depreciation: how to get your withheld money backInsurance claim without receipts: how to prove what you ownedHow to read a depreciation schedule from your insurerActual cash value vs replacement cost: what it means for your belongingsHow much personal property coverage do you need?Home inventory checklist, room by room, with a free templateHow to file a renters insurance claim, step by stepProof of loss: what the form asks for, with a free worksheetWhat is a loss report? What goes in one, with an exampleHomeowners insurance coverages A, B, C and D, explainedDoes homeowners insurance cover theft? Limits, valuables and how to claimHow much renters insurance do you need? A quick way to work it out
Indemnia builds the itemized list this all gets applied to, with the receipt attached to the line it proves. See how it works.