Actual Cash Value vs. Replacement Cost: What's the Difference?

Understand Your Insurance Policy Before It’s Too Late

In the aftermath of a disaster—whether it’s a fire, flood, or theft—the difference between being partially reimbursed or fully made whole often comes down to a single detail in your insurance policy: how your belongings are valued.

Two terms dominate the fine print of most homeowners and renters policies: Actual Cash Value (ACV) and Replacement Cost Value (RCV). And while they may sound similar, the gap between them can cost you thousands. Understanding this difference isn’t just smart—it’s essential.

At MyStash, we help you inventory your assets and empower you to make informed insurance decisions that protect their full value.

What Is Actual Cash Value (ACV)?

Actual Cash Value is the amount your items are worth today, after depreciation. In simple terms, it’s what you’d get for your 5-year-old laptop or couch on the secondhand market—not what it would cost to replace them with new versions.

Example:

You bought a TV for $1,500 five years ago.
Depreciation knocks its value down to $500.
Your insurer pays $500—not enough to buy a similar new one.

What Is Replacement Cost Value (RCV)?

Replacement Cost Value covers the full cost to replace your lost or damaged item with a new one of similar kind and quality—no depreciation deducted.

Example:

That same $1,500 TV gets destroyed.
With RCV coverage, your insurer gives you the funds to buy a new $1,500 TV today.
You’re made whole.

Why This Matters: Your Financial Recovery Depends on It

Imagine losing your home in a wildfire. Every item—furniture, electronics, appliances—must be replaced. If your policy pays only Actual Cash Value, your payout could fall tens of thousands of dollars short.

If you don’t know what coverage you have today, you’re gambling with your future.

How MyStash Helps You Take Control

Insurance companies require proof of ownership and value. With MyStash, you can:

Easily document your belongings with photos and descriptions
Get AI-powered estimates of current market value and replacement cost
Store receipts and warranties for high-value items
Create a secure, digital inventory accessible from anywhere—even post-disaster
Export detailed reports to support faster, fuller insurance claims

Upgrade Your Coverage Strategy

When you combine a complete MyStash inventory with a replacement cost policy, you’re not just insured—you’re empowered. Our users report faster payouts, fewer disputes, and greater peace of mind in times of crisis.

Don’t wait for a disaster to find out your insurance wasn’t enough.

Take Action Now

Review your insurance policy.
Look for language like “Actual Cash Value” or “Replacement Cost Value.”
Not sure? Call your agent.

Then, protect your coverage with a MyStash inventory.

👉 Start Your Free Inventory Today

Because understanding your coverage is the first step.

Documenting it is the next.