Most policies provide personal property coverage on an actual cash value basis, which factors in depreciation. But you have the option to purchase your personal property coverage on a replacement cost basis, which would provide coverage for the actual dollar amount regardless of depreciation.
Example: Let’s say you purchase a laptop for $1,000 and two years later, it is stolen. On a standard policy with actual cash value, you will receive $800 because the laptop’s value depreciated over those two years. If you’d purchased a personal property replacement cost policy, you would receive $1,000 for the stolen laptop, regardless of depreciation.
Learn more about actual cash value vs replacement cost