What is the difference between replacement cost and replacement value?

Replacement cost is the cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one.

Replacement value is the full cost to repair or replace the damaged property with no deduction for depreciation, subject to policy limits and contract provisions.