Deciding between actual cash value and replacement cost value is a trade off between the cost of coverage and potential out-of-pocket expenses. If you're looking for the cheapest home insurance, then insuring your belongings at actual cash value will likely be a better fit. On the other hand, if you want to limit what you spend on new belongings if they are destroyed in a covered loss, and have more room in your budget for home insurance, then replacement cost value will probably be best.