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Actual cash Value

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Posted: Sat May 08, 2010 1:01 am   Post subject: Actual cash Value   Want an explanation for Insurance Policy for contents ACV verses Replacement Sharon ssweany06@embarqmail.com _________________ Register Now to have your Insurance queries solved.	SRS Guest
Posted: Sat May 08, 2010 5:23 am   Post subject:    Replacement cost is cost to replace item with new. ACV is actual cash value or replacement cost less depreciation.	tcope Forum Expert Joined: 22 Nov 2006 Posts: 5199 Location: Salt Lake City, UT 286.08 Dollars($)
Posted: Wed May 26, 2010 3:34 pm   Post subject:    Just wanted to elaborate on tcope’s answer. Replacement cost pays to replace the item, without regard to the actual value of the item. In other words, if you owned a 10 year old television set, it is worth quite a bit less than a new television set, even if the new television set is of like kind and quality of the older one. If you had replacement cost coverage, the insurance company would pay for you to buy a new television set. Let’s look at this on a larger scale. A 10-year old kitchen is worth quite a bit less than a new kitchen. Yet, if a fire destroys the kitchen, you will have to put a new kitchen in. So if you carried ACV (actual cash value) on your house insurance, you would only get paid the value of a 10-year old kitchen. You could end up having to cough up the difference out of our pocket.	Larry_Freudenberg New member Joined: 20 Apr 2010 Posts: 13 Location: Charleston, SC 3.60 Dollars($)

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