Home settlement check
Replacement Cost vs Actual Cash Value
Replacement cost and actual cash value are two ways a home quote can describe a payment after a covered loss. Replacement cost looks at what it takes to repair or replace. Actual cash value subtracts age and wear.
The words on the quote matter more than a nickname on the summary page. Read which method applies to the dwelling and which applies to belongings.
On a home quote, start with the dwelling line. The amount printed there is the repair or rebuild figure the quote used. Separately, read whether a covered dwelling loss is settled at replacement cost or at actual cash value. Those are not the same promise, even when the dwelling amount looks similar.
Belongings are the next place this shows up. Personal property is sometimes settled at actual cash value unless the quote says replacement cost. A roof, or another part of the house, can also be called out with its own settlement method. If the quote names that exception, copy it. Do not assume the dwelling method covers every line.
Actual cash value is not a sale price, and replacement cost is not a guarantee of a blank check. Both still sit inside the limits printed on the quote, and a deductible still applies to a covered claim. This page does not invent those amounts. Use the figures on the quotes you are comparing.
The rest of the home checklist, including what the dwelling amount is for, is on what a home insurance quote includes. The walkthrough for gathering the pieces of the house is the home insurance calculator. Quote entry is home insurance quotes.
Compare quotes for the same address. If one quote settles the dwelling at replacement cost and another at actual cash value, the payments are not a fair ranking until you know that. The company shortlist, after the method matches, is compare insurance companies by ZIP code.
A short comparison
Mark the method on each line. A missing word is not a match.
| Line | Replacement cost | Actual cash value |
|---|---|---|
| Dwelling | Repair or rebuild without an age deduction, inside the limit | Repair or rebuild minus age and wear |
| Belongings | Replace items without an age deduction, when the quote says so | Often the default unless replacement cost is listed |
| A named exception | Read it even if the dwelling says replacement cost | A roof or other part can be settled differently |
| Deductible | Still your share of a covered claim | Still your share of a covered claim |
Drivers in the household can start a car quote at the auto quote form. Settlement method on a house does not describe collision or comprehensive. If one company may write both policies, read bundled auto and home insurance quotes before you mix the decisions.
Match the deductible too, including a wind or hail deductible if the quote prints one. A lower payment that changed the settlement method is a different offer.
Steps to compare the settlement method
Same house, then the words on each line, then the payment.
- Use the same address and the same ZIP code on every quote.
- Copy the dwelling amount and the settlement method next to it.
- Do the same for belongings, and for any exception the quote names.
- Compare the payment only when the method and the deductible match.
If a quote will not say which method it uses, you do not have this comparison yet. Wait until the words are on the page.
Start the home quote
Enter your ZIP code to open the home quote on this site. Check replacement cost or actual cash value on the dwelling and on belongings before you compare companies.