Actual cash value coverage refers to the current value of your property or belongings at the time of a loss. This value takes into account depreciation, which means that the payout you receive for a damaged or stolen item will be its market value minus the depreciation. For example, if your five-year-old television is stolen, the actual cash value payout will be significantly lower than the cost of a brand-new television. While cash value coverage is generally less expensive, it may only partially cover replacing your items or rebuilding your home.