When insureds complete improvements or repairs around their properties themselves, the question arises whether actual cash value would be calculated differently than if contractors did the work. Would the calculation of replacement costs be treated differently?

By definition, a do-it-yourselfer is one who repairs or replaces damaged property himself. Thus, under a replacement cost policy, the do-it-yourselfer would be entitled to recover replacement cost, as opposed to actual cash value. There are, however, circumstances in which actual cash value recoveries are greater than replacement cost recoveries (see below). In such instances, insureds may elect to receive actual cash value.

Also, do-it-yourselfers may have insured their properties at actual cash value. This might be the case, for example, with a small business that elected the actual cash value option of a business-owners policy.