What is the difference between Replacement Cost and Actual Cash Value and why can’t I just insure my building for what I paid for it?
Replacement cost pays to repair or replace with like kind and quality with no deduction for depreciation. Actual Cash Value is full replacement cost less depreciation taking into account the age of the property. Market value is very rarely the some amount as replacement cost or ACV and may not be adequate at the time of the loss.
