How your belongings are valued after a claim can make a big difference.
The difference
- Replacement cost: pays what it costs to buy a similar item new
- Actual cash value: pays replacement cost minus depreciation, so older items pay much less
- Replacement cost coverage usually costs a bit more
- Some insurers pay actual cash value first, then the rest after you replace the item
General educational information, not insurance advice. Coverage depends on your policy and state. Savings Nestle isn't paid by any insurer, agent or broker.