ue. This will cover the cost to replace the item in contrast, the second option addresses the insurance cover.
For example, if your washer was taken from your condo unit the insurance company would write an amount of money based on the price your washing machine cost during the purchase as well as its worth during the time it was taken. They will also verify the current value of the washing machine to determine the cost of replacement.
If your item has a higher value than its current value, the its cash value is better suited. Coverage for cost of replacement could benefit items which have lower worth.