How much should PHAs insure their property for?
The ACC requires that property insurance be written on a replacement cost basis. This means that the insurance will pay the cost to replace the destroyed or damaged property on the same premises with other property of comparable material and quality, or the actual amount spent to repair or replace, whichever is less. As opposed to insuring on an “actual cash value” basis, depreciation based on the age and type of construction of the property may not be taken into consideration when adjusting a loss. If depreciation is taken into consideration, it will produce inadequate values and the PHA will become a co-insurer on each loss. In some cases, this method has produced per dwelling unit values of under $10,000 thereby abrogating the intent of the ACC insurance provisions, which is to protect the interest of the Federal government in the PHA properties. Limits for Employee Dishonesty Insurance What are the limits for Employee Dishonesty insurance? The minimum limit is based upon the cash f
