Coverage explainer
Your stuff: depreciated or new-for-old?
The settlement type on your personal property — ACV vs RCV — is one of the highest-leverage lines on your declarations page. Here's what each one actually pays.
A real claim, both ways
| Item | Original | ACV pays | RCV pays |
|---|---|---|---|
| 55″ TV (10 yrs old) | $900 | $180 | $500 |
| Couch (8 yrs old) | $2,000 | $600 | $1,800 |
| Laptop (5 yrs old) | $1,500 | $400 | $1,200 |
| Bedroom set (15 yrs old) | $3,500 | $600 | $3,000 |
| Total | $7,900 | $1,780 | $6,500 |
Difference: $4,720 out of pocket — for a small kitchen fire that destroyed common items.
Where to find this on your dec page
Look for Coverage C (personal property). Underneath it you'll see one of:
- "Replacement Cost" or "RC" — you're on RCV. Good.
- "Actual Cash Value" or no settlement language listed — you're on ACV. Call your agent today.
RCV doesn't override special sub-limits. Jewelry, firearms, cash, and collectibles still cap out at ~$1,500–$2,500 unless scheduled separately.
Check your settlement type
Upload your dec page and we'll tell you whether your personal property is RCV or ACV — plus every sub-limit on your contents — in 60 seconds.
Check my policyFrequently asked
What's the difference between ACV and RCV on personal property?
ACV (actual cash value) pays the depreciated value of what you lost — a 10-year-old TV gets you maybe 20% of its original price. RCV (replacement cost value) pays what it costs to buy a new equivalent today. On a $40k contents loss, RCV typically pays 50–100% more than ACV.
How do I know if my personal property is RCV or ACV?
Look at your declarations page for 'Replacement Cost Coverage on Personal Property' or 'Coverage C Settlement: Replacement Cost'. If you see 'Actual Cash Value' or no language at all, you're likely on ACV. Adding RCV usually costs $30–$80/year — one of the highest-leverage upgrades in homeowners insurance.
Is there a depreciation holdback even with RCV?
Yes. Most RCV policies pay ACV first, then release the depreciated portion (the 'recoverable depreciation') only after you actually replace the items and submit receipts. Plan to front the difference for 30–90 days.
Are there limits on RCV for certain items?
Yes — and this catches people. Even with RCV personal property, sub-limits still apply to jewelry ($1,500–$2,500), firearms ($2,500), cash ($200), and other 'special limits' categories. A scheduled-items rider closes those.
Should I switch from ACV to RCV?
For most homeowners, yes. The premium increase is small (often $30–$80/year), and the payout difference on a major loss is often $10,000+. The only case for sticking with ACV is if you'd rather pocket the small savings and accept a 30–60% lower payout on contents.