Homeowner Insurance Replacement Value vs. Actual Cash Value

Something that I find in writing homeowner’s insurance is that you need to look for policies that give you replacement cost coverage on the dwelling and the home, instead of actual cash value, because you’ll get more money at the time of the loss and you’re able to rebuild.

I never quote anything unless it has replacement value coverage on the personal property.

There are some policies that are sold that cover only actual cash value, if you’re in a substandard market area, meaning that maybe the home values are below a certain amount of value, or an area without adequate fire protection, or perhaps an older home that hasn’t been maintained in some time and has some significant problems.

And there are people who don’t need to, but to get a lower rate will buy these types of policies without realizing what they’ve bought.

Gordon Lampley is the owner of Sunbelt Insurance, Inc., in Dickson, Tennessee.

Gordon is an independent agent with 37 years of experience, representing 20 insurance carriers and offering all lines of property & casualty, life, and health insurance.

He can be reached by email or by phone at 615-446-9292.

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