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Frequently Asked Question

What is the difference between replacement cost and actual cash value?

The difference between replacement cost and actual cash value is a deduction for depreciation.

Replacement Cost is the cost to replace the property on the same premises with other property comparable material and quality used for the same purpose. Actual Cash value is the cost to replace with new property of like kind and quality, less depreciation. The difference between replacement cost and actual cash value is a deduction for depreciation.