What is “replacement cost” and “actual cash value”?
Replacement Cost is the amount of money you would need to spend to replace your home with another of like kind and quality on the same site. Actual Cash Value is the replacement cost, less depreciation. To determine the actual cash value, the general condition and character of your home are taken into account. Replacement Cost and Actual Cash Value are generally used in reference to the home, not to the land it is built on.
