What is the difference between actual cash value and replacement cost value, and why should you make sure you understand it?

The Difference Between Replacement Cost Value and Actual Cash Value

Most homeowners have Replacement Cost Value (RCV) insurance coverage for wind and hail damage on their homes.  However, more and more insurance companies are transitioning their policies to Actual Cash Value (ACV) coverage.

If you file a claim, and you have ACV coverage, you're going to be paying more to repair or replace your damaged property.  This video explains the difference between these two types of policies.  You'll be glad to know the meaning of actual cash value and replacement cost value before you file a claim.

Homestead Roofing, Inc is a licensed and fully-insured roofing contractor in Colorado Springs, Colorado.  We serve homeowners in Colorado Springs, Fountain, Falcon, Peyton, Manitou Springs, Woodland Park, Elbert, and other surrounding communities in El Paso, Teller, Elbert, and Chaffee counties.