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Difference Between "Actual Cash Value" and "Replacement Cost Value" with Personal Property

Difference Between "Actual Cash Value" and "Replacement Cost Value" with Personal Property

To explain the difference we need to start out by explaining what each is separately. Replacement Cost Value “RCV” is a coverage that pays to purchase new at the current market value with no regards to depreciation. Actual Cash Value “ACV” is replacement cost value minus the depreciation. Depreciation is the decrease in adjusted value due to wear and tear or age.