To explain the difference we need to start out by explaining what each is separately. Replacement Cost Value “RCV” is a coverage that pays to purchase new at the current market value with no regards to depreciation. Actual Cash Value “ACV” is replacement cost value minus the depreciation. Depreciation is the decrease in adjusted value due to wear and tear or age.
The old saying “You get what you pay for” is universally used, yet when it comes to insurance many people shopping want the cheapest insurance. There are numerous factors that go into tailoring the right policy for each individual. A few important things to consider when looking are customer service, quality product and industry knowledge. When it comes to making a claim you will want to be on the phone working through the claim with our office and not waiting on hold hoping your not just another number to deal with. You don’t have to go insurance crazy and cover everything in your house right down to your underwear. It is better to understand the limits and coverage’s that will protect you now and in the future. Saving a little money upfront might cost you a lot more in the end.
If you would like to discuss any of your insurance needs and questions, please contact one of associates by calling 517-337-6000 or visiting our website www.hksagency.com.