If the refrigerator is damaged and the homeowner must file an insurance claim, the homeowner will be reimbursed for theactual cash value(ACV) of the damaged or destroyed property. The ACV is calculated by taking the asset's replacement cost, which is the cost to replace the asset at its pr...
What is DP-1 insurance? DP-1 offers the least coverage of the three dwelling insurance policies. Unlike the other types, additional living expenses coverage is not automatically included. When youfile a claim, it’s usually paid out on anactual cash value (ACV) basis. This means that deprec...
When an insurance company gets licensed to sell policies in the state of California, it also agrees to financially support the FAIR Plan if it runs out of money following a catastrophic disaster. If a wildfire destroys a swath of homes on the FAIR Plan and there is not enough money in res...
If you have an RCV policy, the insurance company will reimburse you for the cost of replacing your belongings with new items of similar kind and quality, without considering depreciation. In the same example of the stolen laptop, an RCV policy would provide the funds needed to purchase a new...
Note that RCV and market value are not the same, especially when it comes to home insurance. Market value is the amount an appraiser deems a home or property is worth or the amount that someone is willing to pay for that home or property, including the land. It is based on what the ...