ACV provisions
- Pays depreciated value at time of loss
- No holdback (full payment upfront)
- Lower recovery on aged property
- Common on older policies, policy reductions
RCV provisions
- Pays cost to repair or replace with new
- Initial payment is ACV
- RCV holdback withheld
- Released on submission of repair receipts
Conditions for RCV
Time to rebuild
- Typically 180 days to 24 months
- Varies by policy
- Extensions available
Like-for-like replacement
- Similar quality and functionality
- Matching statute applies
- Code-upgrade coverage separate
Receipt submission
- Actual cost incurred
- Not estimated
- Contractor invoices required
Common RCV disputes
- Holdback never released
- Carrier disputes repair completeness
- Timeline exceeded
- Code-upgrade cost classification
Valued policy (Florida)
- Fla. Stat. 627.702
- Total-loss on fire/lightning: full policy amount
- Can't reduce below policy limit on total loss
- Statutory obligation