depreciated value

What Is Difference Between Actual Cash Value And Replacement Cost?

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What Is Difference Between Actual Cash Value And Replacement Cost? While both types of coverage help with the costs of rebuilding your home or replacing damaged items after a covered loss, actual cash value policies are based on the items’ depreciated value while replacement cost coverage does not account for depreciation. What is the difference

What Is Better Actual Cash Value Or Replacement Cost?

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What Is Better Actual Cash Value Or Replacement Cost? Replacement cost also provides extra protection above the policy’s limit against material and labor cost increases. Therefore, replacement cost is a better homeowner insurance coverage option than the actual cash value because it restores the policyholder’s situation to what it was before the covered loss occurred.