Two men are standing in front of you.
- “Nice Guy” looks kind. Generous. Is smiling. He wants to help.
- “Bad Guy” looks mean. He is angry and looks like he wants to hurt someone.
Actual Cash Value “ACV” insurance policies can be like the Bad Guy.
Replacement insurance policies are like the Nice Guy.
Let’s say you have major roof damage.
The Bad Guy policy will pay you (new roof cost – depreciation factor – your
deductible).
The Nice Guy policy will pay you (new roof cost – deductible).
The difference between the two checks may be thousands of dollars.