When it comes to property insurance, one of the most important (and often overlooked) questions is:
Will your policy pay enough to replace what you lost?
That depends on whether you’re covered for Actual Cash Value (ACV) or Replacement Cost—and the difference could cost you thousands.
🔹 Actual Cash Value pays for what your item is worth today, factoring in depreciation. So if your 5-year-old TV is stolen, you’ll only get what it’s worth now—not what it costs to buy a new one.
🔹 Replacement Cost pays the full price to replace your item with a brand-new version of the same kind, without subtracting for wear and tear.
👉 Example:
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Your couch originally cost $2,000
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ACV may pay $800
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Replacement Cost may pay the full $2,000
Why it matters:
If you want to be fully covered in the event of a loss, replacement cost coverage is usually the better choice—especially for big-ticket items.
Need help reviewing your policy? Our team is here to make sure you’re not left underinsured.