Homeowners Replacement Cost vs ACV Coverage Calculator 2027

Compare Replacement Cost (RCV) vs Actual Cash Value (ACV) homeowners insurance for 2027 — see roof age depreciation impact, claim payout difference.

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Replacement Cost Value (RCV)

Insurer pays cost to replace damaged item NEW at today's prices. New roof = new roof payment. New TV = current model price. Premium 20-30% higher than ACV.

Actual Cash Value (ACV)

Insurer pays NEW cost MINUS depreciation. 12-year-old roof on a 20-year asphalt roof = 60% depreciated. Your $25k roof claim might pay only $10k. You eat the rest.

When ACV Is Disastrous

Older homes with 15+ year roofs. Older HVAC, water heaters, appliances. Hail damages roof → ACV pays you for current value of OLD roof, not new roof. Out-of-pocket gap $5-30k common.

Functional Replacement Cost

Middle ground. Replaces functionality (modern equivalent) without exact match. E.g., copper plumbing replaced with PEX (cheaper, works the same). Useful for older homes.

Source: iii.org homeowners insurance guides, naic.org RCV/ACV standards. Last updated: May 2026.

Frequently Asked Questions

How do I know if I have RCV or ACV?

Check Declarations Page. Look for 'HO-3' (typically RCV) vs 'HO-1/HO-8' (ACV). Roof can be ACV even if home is RCV — check rider for 'Roof ACV Endorsement'.

Does flood cover under RCV?

NFIP flood: ACV on contents always. RCV on dwelling only if primary residence + RCV chosen. Most basement contents = ACV → painful claims.

Should I upgrade to RCV?

Yes if roof >10 years, contents valuable, or older systems. Annual premium increase ~$200-500 vs potential $10-30k out-of-pocket on big claim.