Claims Payments in Home Insurance Written by Mila Araujo and updated on October 14, 2021;
Reviewed by Samantha Silberstein
Actual Cash Value and Replacement Cost: What details are required?
When it comes to the cost of replacement, can you negotiate?
The concept of replacement cost and what it means for their home insurance coverage are a source of confusion for nearly half of all homeowners.
Many people believe that the limits on their insurance policy’s “dec” page are a good indicator of how much they will be paid in case of a claim.
Yet, this isn’t true.
The cutoff points on the dec page are the most extreme you could be paid, not really how much cash you’ll get.
What you need to know about how much you will be paid in the event of a claim, as well as the distinctions between replacement cost and actual cash value coverage, can be found here.
