Understanding Your Tampa Homeowners Insurance Coverage

December 23, 2022

As a Tampa homeowner, it’s important to protect your home and belongings with a reliable insurance policy. But with so many options available, it can be overwhelming to choose the right coverage for your needs. Two common types of coverage that Tampa homeowners may come across are actual cash value and replacement cost coverage. Understanding the differences between these two options can help you make an informed decision about your Tampa homeowners insurance policy.

Actual Cash Value Coverage

Actual cash value coverage is a type of Tampa homeowners insurance that pays out the value of your damaged or lost property minus depreciation. In other words, it covers the value of the property at the time of the loss. Depreciation is calculated based on factors such as the age and condition of the property. For example, if you have a 10-year-old television that is damaged in a fire, the insurance company will take into account the age and wear and tear of the television when determining the actual cash value.

Replacement Cost Coverage

Replacement cost coverage is a type of homeowners insurance Tampa that pays out the cost of replacing your damaged or lost property with new items of similar value. This means that if you have a 10-year-old television that is damaged in a fire and the cost to replace it with a new one is $500, the homeowner insurance Tampa company will pay out the full $500.

HH Insurance | Tampa Homeowners Insurance

As a leader homeowner insurance Tampa, HH Insurance knows it’s important to carefully consider your options when choosing between actual cash value and replacement cost coverage. While actual cash value coverage may have lower premiums, it may not fully cover the cost of replacing lost or damaged property. On the other hand, replacement cost coverage allows you to fully replace lost or damaged property but has higher premiums and the possibility of exceeding policy limits. At HH Insurance we have hundreds of years of Florida flood insurance, marine insurance Florida, and homeowners insurance expertise helping homeowners protect their belongings from the uncertainties ahead. To determine the best coverage for your specific needs and budget, it’s a good idea to consult with a homeowners insurance Tampa agent or broker.


**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.