My Canon R5 (Mark I) was stolen. I bought it for $3,900 in 2020. In 2026, it is discontinued. Used ones sell for $1,500. The new R5 Mark II costs $4,000. My insurance company sent me a check for $1,500 (Actual Cash Value). I cannot afford the new model.
Key Takeaways
- ACV vs. RC: Actual Cash Value (ACV) pays what the used camera is worth today. Replacement Cost (RC) pays for the “new, like kind and quality” equivalent (the Mark II).
- The “Functional Equivalent” Clause: If your model is obsolete, RC policies pay for the current model that does the same job. This is a massive upgrade loophole.
- Avoid “Stated Value” unless Vintage: Stated Value caps the payout. If you stated $3,900, you get $3,900. But Replacement Cost might get you $4,300 if the new model is more expensive due to inflation.
- Depreciation Kills: Digital cameras depreciate 50% in 3 years. ACV insurance is practically worthless for digital bodies.
The “Why” (The Trap)
The trap is “Cheap Premiums.”
ACV policies are cheaper. You save $50/year.
But when you claim, you lose $2,500 in payout.
Insurers assume electronics depreciate. Unless the contract explicitly says “Replacement Cost without deduction for depreciation,” they will apply a depreciation curve.
The Investigation (My Analysis of Payouts)
I checked how policies handle the “Upgrade.”
TCP (Tom C. Pickard)
- The Policy: Replacement Cost.
- The Scenario: R5 stolen. R5 Mark I not available new.
- The Payout: Pays for R5 Mark II (New). You get an upgrade.
PPA (PhotoCare)
- The Policy: Replacement Cost (usually).
- The Catch: They might try to source a “Refurbished” Mark I first. If they can’t find one, they fund the Mark II.
General Business Policy (State Farm)
- The Risk: Often ACV for electronics unless endorsed. “We found a used R5 on eBay for $1,400. Here is your check.”
Comparison Table
| Feature | Actual Cash Value (ACV) | Replacement Cost (RC) |
| Payout Basis | Used Market Price | Price of New Equivalent |
| Depreciation | Yes (-30% to -70%) | None |
| Discontinued Items | Pays Used Value | Pays for Newest Model |
| Premium Cost | Lower | Higher |
Step-by-Step Action Plan
- Read Your Policy: Look for “Valuation.” It must say “Replacement Cost.”
- Argue “Like Kind”: If they offer $1,500, argue: “A used camera comes with shutter wear and no warranty. That is not ‘Like Kind’ to my well-maintained gear. I require a new equivalent.”
- Find the Equivalent: If the R5 II is out, link the B&H page. “This is the current equivalent.”
- Don’t Insure Old Gear for New Prices: If you have a 5D Mark III, insure it for replacement value, but realize premiums might be high relative to the payout. Sometimes self-insuring old bodies is better.
FAQ
Do I profit if I get the Mark II?
Technically yes, in features. Insurers accept this as the cost of doing business.
What if the new model is cheaper?
They pay the lower price of the new model.
Does this apply to lenses?
Yes. EF lenses are discontinued. RC pays for the RF equivalent (often more expensive).