Claim vocabulary
What is RCV on an insurance claim?
RCV stands for Replacement Cost Value. It's the full cost to fix or replace your damaged property today, with no deduction for age or wear. On an RCV policy, that money comes in two checks — and most homeowners don't realize the second one exists. Here's how it actually pays out.
The RCV math, in one example
Hail destroys a 10-year-old asphalt shingle roof. Contractor estimate to replace it today: $24,000. Deductible: $2,000.
Total paid if you complete the repairs: $22,000 (RCV minus deductible). If you keep the first check and never repair, you net $10,000 and forfeit the $12,000.
RCV vs ACV — quick comparison
| Loss settlement type | First check | Second check? |
|---|---|---|
| RCV (Replacement Cost) | ACV minus deductible | Yes — recoverable depreciation, released after work |
| ACV (Actual Cash Value) | ACV minus deductible | No — depreciation is permanent |
Full breakdown: Replacement Cost vs Actual Cash Value.
Watch out for these RCV gotchas
ACV-only roof endorsement
Even on an RCV policy, roof claims for wind/hail may be settled at ACV after the roof reaches a certain age. Check the declarations page.
Cosmetic damage exclusion
Dents from hail that don't affect function may be excluded — common on metal roofs.
Recoverable depreciation deadline
You typically have 180 days to 2 years from the date of loss to complete the work and submit invoices. Miss it and the second check is gone.
Matching vs non-matching
Carriers may refuse to replace undamaged slopes for color match. State laws vary — push back if your state has a matching statute.
Frequently asked
What does RCV mean on an insurance claim?
RCV stands for Replacement Cost Value. It's what it would cost today to repair or replace the damaged property with new materials of like kind and quality, with no deduction for age or wear. On an RCV homeowners policy you get the full RCV — typically in two checks.
Why is my first check less than the RCV?
On an RCV policy the carrier first pays Actual Cash Value (RCV minus depreciation, minus your deductible). After you complete the repairs and send signed invoices, they release the held-back depreciation as a second check. The two checks together equal the full RCV minus the deductible.
How do I get the second RCV check?
Complete the repairs with a licensed contractor, then send the carrier a signed contractor invoice, paid-in-full receipt, and proof of completion. Most carriers release the recoverable depreciation within 2-4 weeks. You usually have 180 days to 2 years from the date of loss — confirm the exact deadline with your adjuster.
Is my roof covered at RCV?
Not always. Even if the rest of your policy is RCV, many carriers attach an ACV-only roof endorsement once the roof passes a certain age (often 10-15 years) or for certain perils like wind and hail. Check your declarations page for any roof-specific loss settlement language.
What if I don't repair the property?
If you keep the money instead of repairing, the carrier only owes the ACV check. The recoverable depreciation is forfeited. That's the trade-off of RCV: the bigger check is contingent on actually completing the work.
Make sure you actually get the second RCV check.
Upload your estimate — we'll show you exactly how much depreciation is recoverable and the steps to release it.
Keep reading
Why Is My Insurance Payout So Low?
The six declarations-page line items that decide every underpayment.
Read moreAfter a claimInsurance Only Paid Half My Roof
Recoverable depreciation, ACV, or partial-slope approval — find which.
Read moreAfter a claimInsurance Claim Denied?
Why claims get denied and how to dispute it.
Read moreGeneral information, not legal or financial advice. Loss settlement terms and deadlines vary by carrier, state, and endorsement.