structures on your property at their replacement cost, while belongings (like your TV or personal laptop) are covered at their actual cash value by default — though you may have the option of adding extended dwelling or replacement cost personal property coverages to your policy for an ...
Unlike actual cash value coverage, replacement cost value does not take depreciation or wear and tear into consideration. Instead, it reimburses you based on how much it would cost to replace, repair, or rebuild your property at today’s prices. As with ACV, your policy’s coverage limits ...
like actual cash value (ACV) policies do. Most standard home insurance policies insure your dwelling at its replacement cost and your personal belongings at their actual cash value. You may have the option to upgrade your personal property coverage to replacement cost, but it’ll cost more. ...
Understanding the difference between replacement cost coverage and actual cash value can help you choose the right coverage for your needs.