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

What is the difference between replacement cost coverage and actual cash value coverage? Your Business is Our Business Request Free Consultation *First Name *Last Name *Phone *E-Mail Address How can we help? Submit Request Property & Casualty Property & Casualty Insurance Bad Faith Insurance Litigation Auto Liability Fire Claim Flood/Water/Mold Sinkhole Claims Structural Defects Business & Corporate Litigation Business & Corporate Litigation Commercial Litigation Breach of Contract Family Law Family Law Alimony Divorce Property Division Timesharing & Parenting Plans What is the difference between replacement cost coverage and actual cash value coverage? Replacement cost coverage is the more expensive of the two types of coverages that you can purchase through an insurance policy. This is generally for purchase of property coverage for either a structure or the contents of a structure or the personal contents of your home. Replacement cost coverage is that cost that it takes to replace an item. Item may be three or four years old. If you would go out and replace it, it’s probably going to cost more and that’s why the coverage costs more. Actual cash value, or ACV as it’s referred to, means that the insurance company or insurance policy is only going to pay what the value of that three year old couch is at the fair market value, what a buyer would pay in the market. So that coverage is less costly and it will pay less at the time that a claim is made. HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us