Home insurance

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Posted: Mon Jul 27, 2009 7:19 pm Post subject: Home insurance

Looking to change insurance companies. I remember reading there are two terms for replacement of home. One covers replacement of a dollar amount for the house and the other replaces home at current value of home. Can you help?

izzyshome

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Joined: 27 Jul 2009
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Posted: Mon Jul 27, 2009 9:55 pm Post subject:

Replacement Cost Value (RCV) Actual Cash Value (ACV) ACV is payment for what you have. If your 30 year old roof is damaged, they owe you for a 30 year old roof. (Say 10K to replace roof... you get 7K minus your deductible.) (here you are out your deductible and the 3K) RCV is they replace the damages and you recover the depreciation. They owe you for a 30 year old roof and then you can recover the depreciated amount. (Say 10K to replace roof....you get 7K minus your deductible and when the work is complete you get the rest.) (here you are out just your deductible). _________________ Can I say I’m working if I stare blankly at my computer all day?

Dasfuk

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Joined: 27 Feb 2008
Posts: 363

Location: Ohio
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Posted: Wed Jul 29, 2009 8:17 am Post subject:

Not to mention that a replacement cost policy would cost more in terms of premium than the actual cash value policy. In other words, ACV policies have cheaper rates. However, if I'm asked for my opinion I'd suggest replacement cost policy since it offers better coverage.

jeorge

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Joined: 07 Oct 2005
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Posted: Sun Aug 02, 2009 4:48 pm Post subject:

Think about the worst case scenario, and think which one you would prefer. With ACV if your home was destroyed would you be able to rebuild your home with the amount? I'm only just recently realizing the differences between ACV and RCV. Check into the premiums for both.

Carol902

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Joined: 24 Jul 2009
Posts: 10

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