
Important tips to follow while buying homeowner’s insurance
Before shopping around for a homeowners insurance quote, learn more about the policy:
Homeowner's insurance policy coverages: actual cash value vs. replacement cost. We'll start off with actual cash value and replacement cost, because if this coverage isn't specified in the quote, homeowners could be in for some serious trauma if there is an insurance claim. Simply put, actual cash value includes depreciating the value of items at the time of the insurance claims assessment. The depreciation calculation varies by the item insured, the insurance company and the individual claims adjuster.
Replacement cost value does not depreciate the value of items insured at the time of the insurance claims assessment. Replacement Cost is the actual cost to replace an item destroyed or damaged i...