What is the difference between actual cash value and replacement cost coverage?

Actual cash value coverage pays out the value of your belongings after depreciation, while replacement cost coverage pays to replace them with new items. With actual cash value, you may receive less money because items lose value over time. Replacement cost coverage typically provides more money to replace items at today’s prices. It’s important to understand which type of coverage you have to make sure you are adequately protected in case of damage or loss.

Posted by Alyssa DiCrasto

Alyssa uses her many years of experience writing about complex industries to research and create clear content that makes insurance easy to understand. She has been with Rate Retriever since its beginning, establishing our strict editorial policy and directing our comparison experience.

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