In general, replacement cost value is the amount it would cost to repair or replace damaged covered property, at the time of the loss or damage, with materials of like kind and quality without deduction for deterioration, depreciation and obsolescence. Actual cash value is the cost to repair or replace damaged covered property, at the time of the loss or damage, with material of like kind and quality, (subject to a deduction for deterioration, depreciation and obsolescence).
Unless you repair the damages or replace covered property, a replacement cost value policy allows for reimbursement on an actual cash value basis only. In that case, depreciation may be applied and will be reflected in your property damage estimate. (Some states may require replacement cost value.) You can collect the recoverable depreciation by providing us with documentation (such as receipts, photos or invoices), showing that the damages have been repaired or covered property has been replaced.