Replacement Cost Vs. Actual Cash Value | RCV Vs. ACV Explained
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YouTubeThe Insurance Quotient IQ
Replacement Cost Vs. Actual Cash Value | RCV Vs. ACV Explained
In this video we will explain the difference between Replacement cost and Actual Cash Value. You will often see Replacement Cost shown as RCV and Actual Cash Value seen as ACV. If you have any questions leave them down in the comments below.
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ACV? Agreed Value? Replacement Cost? What do these mean? ACV stands for Actual Cash Value. As explained, the insurer tells you how much you will be recieving based on the cost to replace your property minus depreciation. Agreed Value is when the insurer pays you an agreed upon amount. Both parties decide how much the insured's property is worth, and that is the maximum amount the insurer will pay you in the event of a claim. Replacement cost is exactly what it sounds like! The insurer will pay y
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