Most property insurance policies value your "stuff" / personal property at
Actual Cash Value (ACV). What does that mean, and why is it important? Well, let’s say you have 10 suites and you paid 1000 bucks each for them. On an actual cash value, or market value basis, those suites are valued at next to nothing. The point is that most of your personal belongings have very little worth on an ACV basis. However, if have a policy that covers your personal property on a Replacement cost basis, you get the full value of your personal stuff in terms of what it would cost you to purchase it brand new today.