Actual Cash Value vs. Replacement Cost

Posted on May 27th, 2010

Let’s speak one on one: Rami Boaziz 305.467.5645

Knowing the details is very important to any insurance claim. These policies are complex and so is the claim process, a public adjuster will simplify the matter giving you a clear understanding. One of the most common questions is the bottomline when it comes to how payout is determined. A hot topic on this point is the differences between actual cash value vs. replacement cost.

The actual cash value is a formula that calculates the difference between purchase price and depreciation. Replacement value points to the cost of replacing an item of similar likeness in today’s market. This type of difference can mean a lot when it comes to money you receive. Your public adjuster will help guide you through this detail and determine if a policy change might be necessary or how recovery should be calculated based on your specific claim.

You can read more about Actual Cash Value vs. Replacement Cost or call Rami Boaziz 305.467.5645 and ask your questions directly.

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