What is the difference between ACV and Replacement Cost?

Actual cash value or ACV is way of valuing your property after a claim. Your insurance company will calculate the value of your property when it was new and depreciate the value based on its age. 
Replacement cost is self explanatory. Simply put, the insurance company will give you the amount of money it takes to replace your property. 
While replacement cost is often more expensive than ACV, we strongly suggest that you select this coverage.