Actual cash value vs. replacement cost: Understanding the difference in home insurance

If your roof is damaged in a fire or a hail storm shatters windows in your home, your homeowners insurance will likely help you pay for the damage. But your payout would vary significantly depending on whether you have actual cash value vs. replacement cost coverage. Actual cash value insures your property for the replacement cost minus depreciation, while replacement cost value covers the full cost of replacing destroyed or damaged property. Find out when each type of coverage typically applies to home i ...