It seems that a "Replacement policy" is much more favorable than an "Actual Cash Value policy"
I just contacted my insurance agency, and I have a ACV policy
Source: RentersInsurance.net & PR Newswire
CHICAGO, March 31 /PRNewswire/ --
Renters insurance generally covers the replacement of belongings up to a specified amount, typically between $20,000 - $40,000. However, there are two types of replacement policies: replacement cost policies and actual cash value (ACV). ACV policies cover the cash value of the possessions at the time of the qualified event and replacement cost policies reimburse the policy holder for the full value of replacing the lost items.
This is an important distinction. If a laptop was purchased three years ago for $2,000, but is worth $500 today, it would still cost more than $500 to replace. An ACV policy would only pay out the $500 value of the laptop as where the replacement cost policy would pay enough to buy a comparable laptop in today's market.
Although coverage is generally affordable at $10 - $20 monthly, apartment and home renters should ask about buying cheap renters insurance coverage discounts. Combining health, auto and life with rental insurance can add savings up to 15%. Protective devices, such as alarms or sprinkler systems, can give an additional 15% in savings. Retired people 55 or older can save 10% - 25% depending on their type of home.