Lock Insurance – Lakeland, Florida

The difference between Homeowners Replacement Cost and Actual Cash Value.


house damageYou have two main areas where this coverage comes into question.

An H-03 (most common type of policy)normally comes with replacement cost on the structure, an example of this is you have roof damage the field adjuster meets you at the property to access the damage he does not know what your policy contains. Let me do hypothetical example. You have roof damage, to replace is $15,000 dollar he will take out the deductible and then he looks at age and wear and tear and actual cash value will deduct another amount for the depreciation, if you have replacement cost it will be the full amount to replace the roof minus your deductible.


Most common were you have to make this critical decision is on personal property coverage (t.v., furniture,and everything that is not attached to the structure). Most people do not know if they have it or not until you have the claim an it is to late. Like the structure the field adjuster does not know what you have but he will make to list actual cash value and replacement cost. Best way I explain it to customers when you have to go and replace your property do you want to buy it new or go to salvation army or yard sales.


There are many different options in your policy make sure you have the right coverages or make sure you are not paying for something you don’t need. Contact your agent today or give Lock Insurance a call we would be happy to review your current coverage even if you are not a current client.

About the Author Don

Don Westerfeld has been active in the field of Insurance and Financial Planning since 1997. Don grew up in Indiana later moving to Lakeland Florida where he continues to reside with his wife and children. When he’s not in the office you can find him enjoying the great outdoors. He has served on several charitable business and non-profit organizations and continues to provide guidance, advice and support to local charities.