Thor Insurance Agency

🏠 Replacement Cost vs. Actual Cash Value — What’s the Difference?

When it comes to home insurance, this one detail can mean thousands of dollars after a claim.

🔹 Replacement Cost (RC)
Pays to repair or replace damaged items with new ones of similar kind and quality — no depreciation deducted.

🔹 Actual Cash Value (ACV)
Pays the replacement cost minus depreciation (age and wear & tear).

💡 Example:
If your 10-year-old roof is damaged…
RC = Pays for a new roof (minus deductible).
ACV = Pays what that old roof is worth today.

Same damage. Very different payout.

Not sure which one your policy has? Contact us to help review.

🍂 Fall Maintenance Tip!
As the fall season rolls in, leaves will start piling up — especially in your gutters! If you don’t have gutter guards, it’s a good idea to clean them out once the leaves have fallen. Keeping your gutters clear helps prevent leaks, ice dams, and water damage as winter approaches. 🏡✨

Send a message to learn more