How much lower is actual cash value?
It could be a lot lower, since depreciation is subtracted. Depreciation is based on the age of the item, wear and tear, and how long it typically lasts. For example: A television, which typically lasts 10 years, loses half its value after 5 years. With an “actual cash value” policy, you would receive only half the original value, minus your deductible; certainly not enough to replace this TV at today’s prices. Replacement cost coverage provides the current cost of a comparable appliance, minus your policy deductible.
