What is the difference between replacement cost and actual cash value on a Georgia homeowners policy?

Replacement cost pays what it costs to rebuild or replace damaged property with new materials at today's prices. Actual cash value (ACV) pays replacement cost minus depreciation — a 15-year-old roof that costs $20,000 to replace might pay only $7,000 after depreciation at claims time. Most Georgia homeowners policies cover the dwelling on a replacement cost basis. Personal property can go either way depending on the policy form. The distinction matters most after a major storm. We review both the dwelling and personal property valuation method on every coverage review.