Agree with Dan - insurance providing replacement value is the way to go. If you replace the item that was lost, stolen, damaged, they will pay the cost of replacement. If you have an item that you don't want to replace, or can't replace, they will give you the depreciated value. You must actually replace it to gt "replacement value". In most cases, if you had the item for quite some time, the depreciated value will be far below what the replacement cost is. If you have a large loss, this makes the cost of replacement coverage worth it.