How much is a loss worth? The policy's valuation method answers that:
Actual cash value (ACV): repair or replacement cost less fair physical depreciation.
Replacement cost: the cost to repair or replace without deducting depreciation.
Market value: what a willing buyer would pay.
Agreed value: the insurer and insured settle the value in advance, and that amount is paid on a total loss.
Stated value: the stated figure generally works as a ceiling, so the insurer can pay less if the property is worth less at the time of loss.
Valued policy (Sections 2053 and 2054): the value of the insured interest is fixed in the policy in advance. On a total loss, Section 2054 calls for the whole amount insured; the value is not re-measured at the time of loss. Section 2058 adds that if the property is not rebuilt, the insured receives the lesser of replacement value or the face amount.
Replacement cost that requires repair first (Section 2051.5(a)(2)): until the property is repaired or replaced, the insurer pays ACV. After the work is done, it pays the difference up to the full replacement cost reasonably paid, within policy limits. Example: repairs of $50,000 with $15,000 of depreciation mean $35,000 now and up to $15,000 more after the repairs.