There are 2 types of home insurance replacement language in homeowner’s insurance policies. The first is “actual cash value” and the second is “guaranteed replacement cost”. The difference is that under actual cash value, you get the depreciated current value of the items as opposed to guaranteed replacement cost where you get paid the value it will cost to replace the damage.
The downside is that the cost of a guaranteed replacement cost policy is significantly higher that one with actual cash value.
