Your home or personal property coverage may only cover the actual cash value of rebuilding or replacing your home’s contents.
Actual cash value would cover the cost of fixing your home, less its depreciated value due to age or use, with home insurance.
Actual cash value policies reimburse personal property at a value that has depreciated over time.
Let’s say you bought a TV three years ago for $800. Today, the insurance company would pay a depreciated amount based on the TV’s age and wear and tear if a burglar steals it.
Home and contents replacement cost coverage is available from some insurance companies.
Replacement cost coverage typically reimburses you for costs that are greater than your policy’s dwelling limit when paying to rebuild a home.
Individual property substitution cost inclusion pays to supplant a harmed or taken thing at its ongoing business sector cost.
