TDCI publishes a consumer page titled “Knowing Your Insurance Policy: Actual Cash Value v. Replacement Cost.” The opened page last-updated line reads March 30, 2026, at 2:32 p.m. TDCI says the purpose is to explain ACV and Replacement Cost terms so consumers can make educated decisions when purchasing or renewing homeowners insurance policies.
This article restates those public definitions and TDCI’s hypothetical roof example. It is informational only — no coverage or claim-payment promise.
Seasons change. So should your coverage. For a free personal policy review, call 865-263-1400 or visit asigtn.com/get-a-quote/.
By All Seasons Insurance Group
| Topic | TDCI statement (opened page) |
|---|---|
| Actual Cash Value | Pays replacement costs minus any applicable depreciation (“wear and tear” or age). |
| Replacement Cost | Pays today’s dollars for the damaged/destroyed item or structure; does not account for wear and tear or age. |
| General comparison | Replacement Cost benefits will generally pay more than ACV; not all dwellings/items qualify for full replacement benefits. |
| Roof example setup | Hypothetical $10,000 roof, now five years old, $1,000 deductible. |
What is Actual Cash Value under TDCI’s explanation?
TDCI states Actual Cash Value policies pay consumers for replacement costs minus any applicable depreciation. Depreciation can be thought of as “wear and tear” or age.
What is Replacement Cost under TDCI’s explanation?
TDCI states Replacement Cost policies will pay consumers for what the damaged/destroyed item or structure would cost in today’s dollars and do not account for wear and tear or the age of the item.
Does Replacement Cost always pay more than ACV?
TDCI says Replacement Cost benefits will generally pay more for a claim than will ACV benefits. However, not all dwellings/items will qualify for full replacement benefits—determinations may be made on a situation-by-situation basis.
What roof example does TDCI use?
TDCI uses a hypothetical $10,000 roof that is now five years old, with a $1,000 deductible. Under the ACV example, TDCI shows a $6,500 payment after depreciation and deductible. Under the Replacement Cost example, if the roof costs $11,000 today, the company would pay $10,000 after the deductible.
What does TDCI encourage consumers to do at purchase or renewal?
TDCI encourages consumers to shop around when seeking a policy and at renewal to ensure that they receive the coverage that they want at a price that they can accept, and to read their policies and ask questions.
Where can questions about this TDCI policy be directed?
TDCI says any questions about the intent of this Policy should be directed to the Insurance Division, 10th Floor, Davy Crockett Tower, 500 James Robertson Parkway, Nashville, Tennessee, 37243, and/or telephone number (615) 741-2176.
When was the opened ACV/Replacement Cost page last updated?
The opened page states: This Page Last Updated: March 30, 2026 at 2:32 PM.
Does this article promise which valuation method a reader’s policy uses?
No. It restates TDCI’s public ACV versus Replacement Cost explanation. It does not promise coverage, claim payment, or eligibility for any reader.
Seasons change. So should your coverage.
