What is Replacement Cost?
Replacement cost is the cost to replace the property at the same location with property of similar quality and material.
Replacement cost is the cost to replace the property at the same location with property of similar quality and material.
Ex: 30 year shingles ripped off by a windstorm are replaced with 30 year shingles in the same or similar color.
Actual cash value is replacement cost - depreciation
Ex: Your roof is damaged and it will cost $2,000 to fix the damage to your 15 year old roof. You will get $2,000-Depreciation= less than $2,000.
Why Purchase a Replacement Cost Policy?
Why Purchase a Replacement Cost Policy?
It offers more protection when a loss occurs.
Why Purchase an Actual Cash Value Policy?
It still offers protection, but generally at a lower price.
Why Purchase an Actual Cash Value Policy?
It still offers protection, but generally at a lower price.
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