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Replacement Cost explained

6 in-depth guides · updated November 2026

Replacement cost rebuilds the house; actual cash value pays what the roof was worth after depreciation. The difference decides whether you can repair at all — and it is often the single biggest misunderstanding in a homeowners policy.RCV vs. ACV worked through a 12-year-old roofRecoverable depreciation and the holdback processExtended and guaranteed replacement cost endorsementsWhy market value is not reconstruction cost