Replacement Cost Value (RCV)
Replacement cost is an option for coverage on property insurance policies. For instance, you can choose to insure your property for the value of its replacement cost. That is the amount it would cost to rebuild your property as it was in like kind and quality before it was destroyed. It also could cover the cost of new items if your belongings are damaged or stolen.
Replacement cost insurance carries a higher premium because the claims are more expensive for the insurer.