Q&A Topics

Friday, March 28, 2014 2:48:29 PM

What’s the difference between actual cash value and replacement cost coverage?

You can choose either actual cash value or replacement cost coverage under home insurance for your personal belongings. Cash value coverage gives you a payout for what an item was worth before the claim, not what it would cost to replace. On the other hand, replacement coverage pays the amount it would cost to fully replace.

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Laura Adams is a personal finance expert, award-winning author, and consumer advocate. As Senior Insurance Analyst, she represents insuranceQuotes in the media and works to make sure consumers protect their financial futures by having the right kinds of insurance.

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