Actual Cash Value Insurance Policy

Posted by Lisa Nichols Nov 19, 2007

When you buy homeowner's insurance, find out what the additional premium is to add replacement cost coverage to your home and personal property inside the home. The standard homeowner's insurance policy is an actual cash value (ACV) policy that doesn't include replacement cost.

If you have a loss, even if it's covered by insurance, you'll lose money when the insurance company appraises the loss. The insurance company will depreciate the value of your home and personal belongings, using their own depreciation calculators to determine settlement amounts. Intrigued? Then learn more about the difference between actual cash value and replacement cost insurance.

Talk back with the writer- tell Lisa Nichols about your experiences buying an actual cash value insurance policy and submit news, tips and stories ideas for the insurance blog