RCV is an acronym used to represent replacement cost value. Simply put, it is the present retail price that you would need to pay to get the items that need replacement after they have been certified damaged. Actual cost value (ACV) on the other hand is quite explanatory.
Let’s use a sample. Let us assume that your roof has an estimated lifespan of 20 years and in its tenth year, it gets damaged. If the cost to replace the roof is put at $20, 000, then the replacement cost value would remain $20, 000 while the actual cost value would be $10,000 (10/20 of $20,000) the $10,000 difference between the two sums is the depreciated value which you will receive. This depreciation sum is as a matter of practice paid after submission of final invoices.