• Skip to primary navigation
  • Skip to main content
  • Skip to footer

813-425-1626

info@ThinkSafeInsurance.com

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
Florida Auto Homeowners Commercial Business Insurance - Think Safe Insurance

Think Safe Insurance

When You Think Insurance - Think Safe!

  • Request a Quote
  • Our Services
    • Auto Insurance
    • Home & Property
      • Homeowner’s Insurance (HO-3)
      • Condo Insurance (HO-6)
      • Manufactured Home Insurance
      • Landlord Insurance
      • Renters / Tenants Insurance
    • Personal Umbrella Insurance
    • Business Insurance
    • Boat Insurance
    • E-Bike Insurance
    • Canine Liability Insurance
  • Refer A Friend
  • Resources
    • Blog
    • Info by Policy Type
    • About Us
  • Auto
  • Home
  • Life
  • Business
  • Other Insurance
    • Flood
    • Jewelry
    • Umbrella
    • Boat
    • E-Bike
    • Dog / Canine Liability

Personal Property Replacement Cost vs Actual Cash Value

You are here: Home / Homeowners / Personal Property Replacement Cost vs Actual Cash Value

One of the most valuable coverages on your homeowners insurance is your personal property coverage. Personal property are the items that you own that aren’t part of the actual house. Imagine turning the house upside down and shaking it. The things that would fall out are personal property.

Related: Homeowners Coverages

The standard policy covers your personal property at Actual Cash Value (ACV). There is an additional coverage that will upgrade your personal property to replacement cost coverage. OK, so what does that mean exactly?

Personal Property Insurance - Replacement cost vs actual cash value

Personal Property: Actual Cash Value (ACV) Coverage

Actual Cash Value means that your items will be covered based on their age and condition. This means the items will be a depreciated value. Imagine what you could sell your items for on eBay, CraigsList, etc.

As an example, let’s say you got a brand new couch for $1,500 3 years ago. How much is a 3 year old couch worth? Maybe $400? Actual Cash Value would give you the $400 current value. But now what do you do? Do you want to go find a $400 used couch, or do you want to go get a new couch? Imagine that difference happening for all your items – furniture, clothes, dishes, electronics, etc. It can be a huge difference. Check out this calculator for some examples.

Related: Loss Settlement

Personal Property: Replacement Cost Coverage

Replacement cost is one of the few coverages that will give you a better position than before the loss. This is because your used items will be valued based on the cost to buy comparable items brand new.

In our couch example above, ACV would only cover $400. Personal Property Replacement Cost would give you the cost of a comparable couch brand new today, so approximately $1,500 based on inflation, etc.

Conclusion

ACV vs Replacement Cost is an important coverage that is easily overlooked. It is easy to overlook how much your property would cost to replace. Furniture, electronics, clothes, dishes, etc. How much would it cost to buy all of that again? How much would you get if you tried to sell your existing items? That difference is the difference between replacement cost and ACV.

If you have coverage questions, contact us at Think Safe Insurance today! Our team of experts would be happy to review your coverage and make sure that you are getting the best value for your insurance dollar. You can reach us at 813-425-1626.

Category iconHomeowners,  Condo (HO-6),  Coverages,  Homeowner (HO-3),  Renter's (HO-4) Tag iconactual cash value,  acv,  condo,  homeowners,  insurance,  personal property,  renters,  replacement cost,  tenants

Subscribe to our newsletter

Get the latest posts delivered right to your inbox

Ready to start your insurance review?

Contact us today, or you can start a quote online.

Contact Us

Footer

auto home and commercial insurance florida

Think Safe Insurance

116 E Bloomingdale Ave Ste B
Brandon, FL 33511
(Inside EZ Choice Realty)

P: 813-425-1626

E: info@ThinkSafeInsurance.com

Sitemap

  • Our Services
  • FAQ
  • Resources
  • Free Insurance Review
  • Request a Quote

Newsletter

Get the latest news, events and announcements straight to your inbox.

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Copyright © 2023 Think Safe Insurance. All rights reserved. Privacy Policy Return to top