What’s the difference between “actual cash value” and “replacement cost”?

When it comes to protecting your personal valuables, there are two different types of coverage valuations: actual cash value and replacement cost. Actual cash value covers what you’d get if you sold your valuable today, generally a lower amount than what you initially paid due to use and depreciation. Replacement cost coverage pays you the amount of money you’d need to buy a brand-new valuable to replace your old one.