How does actual cash value (ACV) affect a homeowners insurance claim?

Actual Cash Value is way of valuing a property insurance loss after a claim. The main concept that you need to understand with actual cash value is that in the event of a loss if your policy is actual cash value, depreciation will be taken out of your payment.

Meaning if you have 10 year old cabinets with a 20 year life and those cabinets cost $10,000 to replace. You will get a check from the insurance carrier for $5,000. (Very simplified for this example this is just informational for your understanding that is not the actual amount you are guaranteed to get).

Yes in most cases actual cash value policies cost less than Replacement Cost policies but the penalty when you have a loss can be severe.

Watch this video “How does actual cash value (ACV) effect a homeowners insurance claim?” for more details:

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created by Ryan Hanley

How does actual cash value (ACV) affect a homeowners insurance claim? by
Ryan Hanley

Ryan Hanley

Director of Marketing at The Murray Group
Ryan is the Director of Marketing for The Murray Group Insurance Services, Inc. Ryan is also the Founder of Content Warfare Podcast, one of the fastest growing podcasts on iTunes dedicated to digital marketing.
Ryan Hanley


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