Mendell Gosnell, CPMPrincipal Broker, Centurion Real Estate Services · Helping Real Estate Investors Build Generational Wealth Through Smart Property Management | Branch Offices in Salem, Corvallis, Eugene and Redmond.

ACV vs RCV: The Insurance Choice Most Landlords Ignore

18 Aug 2026 · 1 min

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In this segment, Mendell Gosnell, CPM emphasizes that rental property owners often overlook a crucial insurance decision: choosing between Actual Cash Value (ACV) and Replacement Cost Value (RCV) coverage. He explains that ACV policies factor in depreciation, resulting in lower payouts after a loss, whereas RCV policies reimburse the full cost to replace damaged property without depreciation deductions. Understanding this distinction can prevent landlords from losing tens or even hundreds of thousands of dollars when filing claims, making the choice between ACV and RCV a pivotal financial safeguard.

At the heart of this problem is just one critical choice that most rental owners really never think about, and that's the actual cash value, or the ACV, versus the replacement cost value, or the RCV. And that coverage is, is different, and it's a very important distinction. So understanding that difference is how depreciation works, and it really could save you tens or even hundreds of thousands of dollars