insurance takes into account the fact that you owned the camera for a couple of years before it was lost or stolen; it will have suffered a certain amount of wear and tear, which has depreciated its value from the “new” and current price. Therefore (ACV = RCV minus depreciation). The payout from ACV insurance will be less than market value, which could mean that you have to add in money yourself to replace an item you lost.

The benefit of choosing RCV on your renters insurance is that any covered loss or damage to your covered possessions will be fully replaced at the current market value. The downside to this option is that your monthly premiums will typically be higher than ACV insurance.

The benefit of choosing ACV insurance is that your monthly premiums will be lower, reflecting the fact that you will receive only the depreciated value of your possessions in the event of loss or damage. You might not receive enough claim money to replace the items you have filed a claim on.