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Do you want to pay more to replace your personal property that was destroyed because of an unforeseen event? If your answer is yes, then you have to buy replacement cost coverage together with your homeowners insurance. In property valuation, the insurance company typically uses two ways. One is the actual cash value – where they pay you the replacement value of the property less depreciation for the length of time you actually owned it. Second is replacement cost, which will cost you more money but, they will pay you the entire amount it would cost to replace that possession in today’s price range.