Why can't I get a replacement cost estimator on an ACV policy?
Could someone simply explain to me the difference between a normal homeowner's insurance policy and an actual cash value policy?
byu/ExtensionFeeling inInsurance
Posted by ExtensionFeeling
2 Comments
ACV is value at time of loss so it includes depreciation. RC is replacement cost. ACV is normally less premium versus RC
You can get a replacement cost estimation, but that’s not really important in the RC vs ACV discussion. RC replaces your home with like kind and quality at the cost of current materials and labor. ACV says “here’s the value of the materials and labor with x years of depreciation factored in”.