Adjustment Standards and Requirements - Building Replacement Cost Value (RCV), Special Loss Settlement, and Actual Cash Value (ACV)
The adjuster is to prepare accurate calculations of the policyholder's building Replacement Cost Value and Actual Cash Value and properly conclude the claim on an RCV or ACV basis as applicable.
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Adjuster Tip: For manufactured (mobile) homes or travel trailers, replacement cost applies if the building:

  • Is at least 16 feet wide and
  • Has an area of at least 600 square feet within its walls.
  • Is the principal residence.

If a single-family building that is a manufactured (mobile) home or travel trailer and qualifies for replacement cost is a total loss or is not economically feasible to repair, then the adjustment of the property will be the lesser of:

  • The replacement cost of the building or 1.5 times the actual value
  • The building limit of liability

Only manufactured (mobile) homes and travel trailers qualify for this type of special loss settlement. All other manufactured (mobile) homes and travel trailers require ACV loss settlement. If you determine that the building is repairable, the loss will be settled according to the replacement cost conditions as stated in the Dwelling Form and RCBAP.