What is the difference between “actual cash value” and “replacement cost”?
Covered losses under a homeowner’s policy can be paid on either an actual cash value basis or on a replacement cost basis. With actual cash value, the policy owner is entitled to the depreciated value of the damaged property. While under replacement cost coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.
Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When “actual cash value” is used the policy owner is entitled to the depreciated value of the damaged property. Under the “replacement cost” coverage, the policyowner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.
Covered losses under the terms of a homeowner’s policy can be paid on either the actual cash value basis or on a replacement cost basis. Under “actual cash value” terms the policy owner is entitled to the replacement cost and then adding depreciation cost. Under the “replacement cost” terms the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at its current price.
Covered losses under a homeowners policy can be paid on either an actual cash value basis or on a replacement cost basis. When “actual cash value” is used, the policyowner is entitled to the depreciated value of the damaged property – so the older the item is, the less money you may receive for it. Under the “replacement cost” coverage, the policyowner is reimbursed the amount it costs to replace the property with something of a similar type and quality at current prices. For more information, contact info@bryantinsurance.
Covered losses under a homeowner’s policy can be paid on either an actual cash value basis or on a replacement cost basis. When actual cash value is used, the policy owner is entitled to the depreciated value of the damaged property. Under the replacement cost coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.
