Is replacement cost value or actual cash value a better choice for homeowners insurance?

Homeowners Insurance, Replacement Value Verses Actual Cash Value

It really depends on your situation.

If you have a newer home, then ACV is probably fine for you and will save you a little money. Your recent purchase price or Market value is much higher than the cost of building your home. A builder would not typically build the house and then sell it to you for less money than it cost him to build it.

If the home is an older home or has depreciated to the extent that it would cost more to build than it is currently valued. Then you should choose a homeowners policy with replacement cost.