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Replacement cost
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Replacement cost pays what it costs to buy an item new today. It usually costs only about 10% more than actual cash value.
It’s the difference between getting a check for an old laptop, and getting a laptop. A $1,200 laptop bought 4 years ago: replacement cost pays $1,200; actual cash value pays maybe $400.
From FILE 002: Why Maya got a new laptop.
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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)