Replacement Cost vs. Actual Cash Value Coverage: There’s a Big Difference

When you have an insurance claim on damaged items or property, there are two ways that carriers will value the item; "replacement cost" vs "actual cash value". It's important to understand the difference between the valuations to make sure you get the 1:1 exact ratio towards your property.

This will look different depending on the item, piece of property, etc. Your insurance agent and provider should provide this information to you clearly though so you can understand what that difference will look like whether it is less or more than what you're expecting.

Have questions about replacement costs vs. cash value? Drop them below. ⬇️

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