The idea of receiving a CASH settlement sounds great in theory. Many times clients think, "Wow, cash, that sounds good to me!" The reality is that the term actual cash value means a depreciated value settlement, and may be one of the least beneficial options available when you are getting the settlement on an insurance claim.
Superior policies are available that offer "replacement cost". The best situation is when you are entitled to a settlement that allows for full replacement cost value with NO Obligation to replace.
This is when you walk away with the cash in hand, enough to replace the item, but you don't need to replace it to get your money.
Protect yourself and your assets. Find out what options you have and don't be afraid to ask for all the details of how a claim would be paid before the claim arises.