Do I have a RCV or ACV policy ?
What does each mean:
RCV is replacement cost value.
ACV is actual cash value.
The difference being this:
An RCV policy refers to the amount that the Insurance company would have to pay to replace your according to its current worth.
An ACV policy refers to the amount that the Insurance company would pay to replace by subtracting the depreciation of your roof and paying that amount.
If your roof if 10 years old and was a 20 year shingle and cost 10,000 to replace:
RCV would pay $10,000.
ACV would pay $5000.00