Property

Property covers your physical assets including buildings, contents, electronics, inventory, machinery and equipment when damaged by perils such as fire, flood, windstorm, or earthquake.  It can cover the cost to repair or replace the damaged property for Replacement Cost or Actual Cash Value.

Actual Cash Value (ACV) covers the cost to repair, rebuild or replace with like kind quality LESS: Depreciation (wear & tear).

Replacement Cost Value (RCV) covers the cost to replace with a new, similar product of like kind and quality.

For example, a fire occurs on your premises and damages a laptop purchased 5 years ago for $2,000. 

ACV – you will be reimbursed the value of a 5-year-old laptop in the same conditions as the one destroyed in the fire. In this, case, the settlement may be $500.
RCV – you will be reimbursed for the value of a new laptop of like kind and quality that was destroyed in the fire. In this, case, the new laptop of the same specifications costs around $1,500.