--- title: Replacement Cost vs. Actual Cash Value – What does that mean? description: Does the difference between Replacement Cost vs. Actual Cash Value in West Virginia confuse you? Let Wickline Insurance help you understand --- # Replacement Cost vs. Actual Cash Value – What does that mean? ## Replacement Cost vs. Actual Cash Value – What does that mean? - Posted on Wednesday, January 22, 2014 An insurance policy usefulness is determined by the policy language used. Specific policy language determines what is covered, what is excluded and the amounts covered under the policy. Reviewing your insurance policy language every now and again may be helpful in the event of a claim, as you would have a better understanding of what may be covered. Insurance policies are full of language and terms that may not be clear right off the bat. Many terms are specific to the industry and to the specific type of insurance that is being purchased. Two such terms are _Replacement Cost_ and _Actual Cash Value_. These terms can be a bit confusing to decipher between. ## Replacement cost vs. Actual cash value in West Virginia: - **Replacement cost** is very simple: It is literally the cost to replace your item with an item of similar quality. Replacement cost policies tend to be a bit more expensive since you are essential getting a brand new item for one that may have otherwise depreciated. Replacement costs are agreed upon by all parties before the insurance policy is finalized. If you have high-ticket items (jewelry, art, RV, boat, luxury vehicle or classic car) this may be the best type of coverage if you can afford it. - **Actual cash value** is the cost to replace the item minus any depreciation. For example, if you were in an auto accident and you had an actual cash value policy, your insurance would pay out the cost of the vehicle minus any depreciation, so if your vehicle is worth less than what you owe you would be responsible for paying that difference out of pocket, unless you had gap insurance. An actual cash value policy can put you in a tight spot if your items cost more to replace or repair than your policy pays out. Depreciation values for big ticket items like RVs or luxury cars can be quite large, so make sure that you have a nest egg and be prepared to pay some out-of-pocket for a loss if you have an actual cash value insurance policy. No matter which policy type you choose, the local experts at Wickline Insurance can answer any questions and walk you through the different types of scenarios to see which policy type is right for your situation. Wickline Insurance in West Virginia can guide you through your homeowner’s insurance policy and more, like [auto insurance](/auto-insurance). Their years of insurance experience can save you a bundle, and they live right in your area, so know firsthand what your insurance needs might be. You can also visit their [**insurance website**](/) 24/7 to learn more about the insurance products they offer. ## Insurance Quotes Give us some info and we'll help you find the best coverage options. [Request a Quote](/quotes) ## Connect Online - [Facebook](https://www.facebook.com/WicklineInsuranceAssociates) - [Yelp](https://www.yelp.com/biz/wickline-insurance-associates-beckley-4) ## Testimonials You don't have to take our word for it. Check out what our customers say about us. [View Testimonials](/testimonials) **Start your quote online or contact our office to find out how we can help you find a policy that fits your needs.** [Start Your Quote](/quotes) ```json {"@context":"https://schema.org","@graph":[{"@type":"BlogPosting","@id":"https://www.wicklineinsurance.com/blog/2014/replacement-cost-vs-actual-cash-value-what-does-that-mean#blogposting","url":"https://www.wicklineinsurance.com/blog/2014/replacement-cost-vs-actual-cash-value-what-does-that-mean","mainEntityOfPage":{"@type":"WebPage","@id":"https://www.wicklineinsurance.com/blog/2014/replacement-cost-vs-actual-cash-value-what-does-that-mean#webpage"},"headline":"Replacement Cost vs. Actual Cash Value – What does that mean?","datePublished":"2014-01-22T19:23:45Z","dateModified":"2025-03-27T13:46:33Z","description":"Does the difference between Replacement Cost vs. Actual Cash Value in West Virginia confuse you? Let Wickline Insurance help you understand","author":{"@type":"Organization","@id":"https://www.wicklineinsurance.com/#organization","name":"Wickline Insurance"},"publisher":{"@type":"Organization","@id":"https://www.wicklineinsurance.com/#organization","name":"Wickline Insurance"}},{"@type":"Organization","@id":"https://www.wicklineinsurance.com/#organization","url":"https://www.wicklineinsurance.com/","name":"Wickline Insurance"},{"@type":"WebPage","@id":"https://www.wicklineinsurance.com/#webpage","url":"https://www.wicklineinsurance.com/","name":"Replacement Cost vs. Actual Cash Value – What does that mean?","description":"Does the difference between Replacement Cost vs. Actual Cash Value in West Virginia confuse you? Let Wickline Insurance help you understand"},{"@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/blog","name":"Blog"}},{"@type":"ListItem","position":2,"item":{"@id":"/blog/2014/replacement-cost-vs-actual-cash-value-what-does-that-mean","name":"Replacement Cost vs. Actual Cash Value – What does that mean?"}}]}]} ```