“Steve's customer service was outstanding. If you are like me, I don't have the time to figure out the best deals on my own. Steve's expertise helped guide us to the best insurance for our house and autos and save money in the end. Anytime I had a question, he was immediately back to me with a response. I haven't had an agent in many years, but Steve will be ours for a long time. I am a real customer.”
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What Is Replacement Cost & Actual Cash Value? How Does It Affect Me?
Replacement cost and actual cash value determine how insurers calculate payments for damaged homes vehicles and contents held by policyholders. Replacement cost does not apply to fences and similar items often valued at actual cash value instead. Policy declarations list which property types receive each valuation method.
Written and reviewed by Steve White, Owner, NPN License#: 19284005 · Initially published September 22, 2026
Replacement Cost-
Usually defined as paying the cost to replace an insured item at the cost of a similar item with like and kind quality, WITHOUT depreciation for age and condition of the item.
Actual Cash Value
Usually defined as paying to replace an insured item with like and kind quality WITH depreciation for age and condition of the item.
Many home policies insure the structure, contents of the structure, and the roof at replacement cost. While things like the fence may be covered with Actual Cash Value coverage. It varies by company, so it’s good to know what your home, roof, and contents coverage are. If replacement cost is available and affordable, it is usually advisable to purchase this type of coverage over actual cash value for your home.
ACV (Actual Cash Value) coverage in contrast, applies to most auto policies. So if you are driving a 2000 Honda Accord and are carrying collision coverage and total the vehicle, if it’s insured on an ACV policy (which most are) the insurance company then tries to determine a reasonably fair price to give you to replace the vehicle with a similar vehicle NOT replace it with a brand new Honda Accord. So they depreciate for the age and condition of the vehicle.
There are always exceptions to the above mentioned norms, so individual circumstances and market conditions will dictate what types of coverage are most appropriate. However knowing what these two types of coverage are and finding out what you have will most certainly reduce the chance that you are not covered in a way that you are hoping for.
We are here to help with this or any of your insurance needs. Feel free to contact us today!
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“I came to Steve with home and auto insurance needs. He made the process seamless while buying my first home. He walked us through the different coverages, and helped us understand what was and wasn't needed. He handled all the coordination with the lender, making it one less thing we needed to worry about. Appreciate all your help, Steve! Looking forward to the continued partnership.”
“Steve is an excellent agent. If you’re looking for an agent who will take the time to make sure your properly covered, he is the best choice. He is knowledgeable on the elements of “what ifs” that come with insurance, you can trust Steve will know the answers or take the time to find out. He is friendly, professional, and will ensure he’s offering you the best options to protect your family or business.”
“I highly recommend Steve White as an insurance broker. When I was migrating from one insurance provider to another, Steve was extremely helpful and responsive—he was the first broker to call me back, the first to offer clear solutions, and he answered all of my questions within hours of my initial outreach. I contacted four different brokers, and Steve stood out immediately for his speed, professionalism, and follow-through. Since engaging with him, we’ve identified excellent carrier options, reviewed every aspect of my coverage in detail, and ensured I had a clear understanding of my policies. I couldn’t have been more pleased with how authentic, collaborative, and thorough Steve was throughout the entire process.”
“I’ve worked with Steve for 6 years and he’s always been proactive shopping rates to save my family money on home and auto insurance. I now have several friends that are working with him as well. Highly recommend his services.”
“We have been doing business with Steve for a number of years. He provides excellent, personal customer service and is very responsive when we contact him. Every year he shops for the best coverages at the best prices for our auto and homeowners insurance. When we have questions, he explains everything thoroughly and handles any dealings with the actual insurance company for us.<br>Steve is a nice guy and very knowledgeable about insurance.”
“Five stars don't seem like enough for the level of dedication Steve White Insurance Group showed in finding the right insurance for my type of business. Steve White went above and beyond, tirelessly exploring various options and navigating complex requirements to secure the best possible coverage at a competitive price. It was clear they invested significant time and effort in understanding my unique needs and advocating on my behalf. Their persistence and commitment to finding the ideal solution made a potentially stressful process surprisingly smooth. I highly recommend them to any business owner looking for an agency that truly goes the extra mile! I am very grateful, Diana Stewart”
“Steve is a knowledgeable professional. I have been using him for over 5 years and he has saved me money and improved my home and auto coverage. When I have had claims, Steve has been there to help walk me through the process. Since Steve is independent, he is always look for better coverage at a better price. I highly recommend Steve White Insurance.”
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Written and reviewed by Steve White, Owner, NPN License#: 19284005, Steve White Insurance Group.
Steve White is an experienced independent insurance agent specializing in personalized coverage solutions, risk evaluation, and multi‑carrier underwriting. He operates stevewhiteinsurance.com, serving clients across Highland Village and the greater DFW area with fast, precise, and highly structured guidance. His expertise includes home, auto, commercial, and specialty insurance lines, with a focus on clarity, efficiency, and long‑term protection strategies. Outside of his insurance practice, Steve is deeply involved in youth baseball, fishing, travel planning, and cooking. He is known for a direct, fast‑paced communication style and a preference for organized, actionable workflows.
Published September 22, 2026. See our editorial process. How we use AI.