Homeowner Insurance terminology can be overwhelming, and choosing the right policy is crucial if you ever need it. Generally, you will hear these coverage options: Replacement Cost Value, Replacement Cost Coverage, and Actual Cash Value. Replacement Cost Value is the actual present-day cost in dollars needed to repair or replace the property with like-kind and quality. Replacement Cost Coverage is a provision in an insurance policy that states losses will be adjusted without a deduction for depreciation. Just because someone has replacement cost coverage does not mean it is sufficient to repair or replace fully, because the coverage has a policy limit. Actual Cash Value (ACV) is a provision in an insurance policy that states losses will be adjusted with a deduction for depreciation. ACV may be less than the original value of the property. Have questions about buying a home? Let’s talk!
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Homeowner Insurance terminology can be overwhelming, and choosing the right policy is crucial if you ever need it. Generally, you will hear these coverage options: Replacement Cost Value, Replacement Cost Coverage, and Actual Cash Value. Replacement Cost Value is the actual present-day cost in dollars needed to repair or replace the property with like-kind and quality. Replacement Cost Coverage is a provision in an insurance policy that states losses will be adjusted without a deduction for depreciation. Just because someone has replacement cost coverage does not mean it is sufficient to repair or replace fully, because the coverage has a policy limit. Actual Cash Value (ACV) is a provision in an insurance policy that states losses will be adjusted with a deduction for depreciation. ACV may be less than the original value of the property. Have questions about buying a home? Let’s talk!

ByBrandon Butler

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In many parts of the country, financial concessions are being offered to help you buy a home. As an example, credits from the seller, real estate agent, or lender may be common to help you gather the funds you need to buy a home. When an “interested party” like a seller, agent, or lender provides you with financial concessions, there are some limitations. The good news is that even with these limits, the concessions may add up to the difference between owning a home or staying a renter. If you are curious about concessions or programs that can help you own a home, let’s talk!
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In many parts of the country, financial concessions are being offered to help you buy a home. As an example, credits from the seller, real estate agent, or lender may be common to help you gather the funds you need to buy a home. When an “interested party” like a seller, agent, or lender provides you with financial concessions, there are some limitations. The good news is that even with these limits, the concessions may add up to the difference between owning a home or staying a renter. If you are curious about concessions or programs that can help you own a home, let’s talk!

ByBrandon Butler

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.