+12 Home Insurance Premiums Actual Cash Value Vs Replacement Cost 2022. For example, your home was destroyed in a fire and your policy includes $300,000 in replacement cost value. After a loss, actual cash value (acv) coverage pays you what your property is worth today.

As with acv, your policy’s coverage limits and deductibles will apply. What is the main difference between replacement cost and actual cash value? So, what type of homeowner’s insurance is better?