HOMEGlossary · Home · Moving out
Actual cash value
Jump to a section
Actual cash value pays what an item is worth today, after wear and tear, not what it costs to buy it new.
| Actual cash value | Replacement cost | |
|---|---|---|
| Pays | what it’s worth today, after wear and tear | what it costs to buy it new today |
| A $1,200 laptop, bought 4 years ago | maybe $400 | $1,200 |
| Price | cheaper | usually only about 10% more |
The opposite is replacement cost.
From FILE 002: Why Maya got a new laptop.
Check our work
Sources
Official and government data first. Every quote is word for word; follow the link to check it yourself.
SOURCE 01Accessed Oct 2026
Insurance Information Institute (Triple-I) · “Renters insurance”
“The price of Replacement Cost coverage is about 10 percent more than Actual Cash Value coverage”
iii.org (opens in a new tab)SOURCE 01Accessed Oct 2026
Insurance Information Institute (Triple-I) · “Renters insurance”
“The price of Replacement Cost coverage is about 10 percent more than Actual Cash Value coverage”
iii.org (opens in a new tab)