The Allen Firm – Friends of the Firm 2022 –
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)