Actual Cash Value Versus Replacement Cost Homeowners Insurance

March 30, 2023

Receiving Florida home insurance quotes is essential to protect the contents of your home. HH Insurance likes to tell our insureds that if you flip your house upside-down, whatever would fall out of it would be considered your coverage C – contents on your homeowners insurance Tampa policy. Anything not bolted down to the dwelling itself. So, for example, coffee tables, dressers, TVs, desks, etc. You normally have two options regarding content coverage on your homeowner’s policy: replacement cost (RC) or actual cash value (ACV).

Homeowners Insurance Tampa | HH Insurance

Actual Cash Value Insurance Policy

When it comes to actual cash value versus replacement cost, normally replacement cost homeowners insurance Tampa does tend to increase your yearly premium. However, here at HH Insurance, we strongly recommend having it on your policy, as it does make a huge difference if you have a loss. We will start with ACV when dealing with a client’s Florida home insurance quotes. We normally don’t recommend this coverage as if you were to have any loss to your content. The carrier will replace it at what it was worth when you bought it. So, for example, if you buy a brand new refrigerator and five years down the road, your house catches on fire and damages that refrigerator, the carrier will give you enough money to replace that refrigerator at what it was worth five years ago. We all know prices tend to increase over the years, so you would get less for that refrigerator than it is worth today.

Full Replacement Cost Home Insurance

Replacement Cost homeowners insurance Tampa Bay FL, policies are the exact opposite when dealing with actual cash value versus replacement cost. When delivering Florida home insurance quotes, our professionals will inform our clients that the carrier will replace the item for what it’s worth today. If you bought that refrigerator five years ago for $3,000 and today the same refrigerator is $6,000, they would give you the $6,000. Whereas if you had actual cash value, they would give you the $3,000. Every adjuster and carrier is different. HH Insurance tells their insureds that having RC on their homeowners insurance Tampa Bay FL policy will save the headache and fight between you and the carrier regarding the value of your items. If you have replacement cost on your contents, you can know that your carrier will cut you a check for what that item is worth today, no ifs, ands, or buts.



**This blog provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverage. These definitions do not alter or modify the terms of any insurance contract.