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The Allen Firm – Friends of the Firm 2022 –

Johnny Dyches

In this weeks’ Friends of the Firm video, we asked Johnny Dyches – Lead Sales with Shane Oliver Insurance – Stephenville  to explain an ACV property insurance policy v. Replacement policy.

Tune in below and learn how not to lose a lot of money if property damage happens-

Thank you, Johnny, for giving us this example –

The difference in an Actual Cash Value policy vs. a Replacement cost policy could be as big as $17,000 v. $7,000.

Here is a scenario as to how:

  • Home Value: $300,000
  • Depreciation Factor:                         50% (an older home)
  • Roof damage happens and new roof costs: $20,000
  • Deductible (1% of home value) $3,000

If you have an ACV policy – you would receive a check for $7,000: 

(new roof cost – 50% depreciation – deductible)

 

If you have a Replacement cost policy – you would receive a check for $17,000:

(new roof cost – deductible)