Yesterday Etler-Kettenacker Agency posted a page on home insurance specifically relating to replacement cost and actual cash value. This page discusses the differences and benefits of these replacement options available with your home insurance policy. Replacement cost comes with a slightly higher premium but is worth the expense. It makes you whole after a loss to your home with current prices of materials for repair or the current cost to replace your home.
Actual cash value (ACV) pays the cost of materials for your home repair minus depreciation. If your home is a total loss again, ACV pays the cost of your home minus depreciation. This reduces the cost of your home insurance premium. Both of these replacement options also apply to the contents of your home.
For a full overview please visit http://www.ekagency.com/home/ins.aspx or contact one of EK Agency’s representatives.