Replacement cost refers to the cost of replacing damaged, lost, or stolen property with a brand new item of similar quality and kind. In other words, if your covered item is damaged, the insurance company will pay you the amount it takes to replace it with a new item of the same type and quality.
Cash value, on the other hand, is the estimated value of the property at the time it was damaged, lost, or stolen. This value takes into account depreciation and wear and tear. Essentially, cash value is the amount you would receive if you were to sell your property in its current condition.