Most policies default to replacement cost for the dwelling but actual cash value for personal property unless you add the replacement cost endorsement. ACV can mean a 10-year-old couch pays out almost nothing. Replacement cost on personal property is usually a small premium increase and can be the single biggest difference at claim time.
Coverage & Cost Details
What is the difference between replacement cost and actual cash value?
By Roni Rivers, Licensed Insurance AdvisorReviewed
Replacement cost pays to replace damaged items with new ones of like kind and quality. Actual cash value subtracts depreciation. Replacement cost on personal property is almost always worth the small extra premium.
Coverage & Cost Details
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