With the rising costs of homeowner’s insurance premiums, you may decide to seek out a more reasonably priced quote with a different provider. Your home ends up suffering extensive damage so you decide to file a claim only to be told some potentially upsetting news: the money you’ll be receiving reflects your home’s depreciated value or its cash value. If you didn’t read your policy terms when you signed with the new insurance provider, you may have unknowingly agreed to switch from replacement cost value (RCV) to actual cash value coverage in order to pay the lower premium.
It’s important to remember that policies vary, including homeowner’s insurance. Florida has two distinct types of policies to cover the average single-family home. One of these provides coverage of the home’s RCV while the other provides Actual Cash Value coverage. The primary difference between the coverage is that Replacement Cost includes the cost for labor and the home’s depreciation amount. Actual Cash Value coverage will only cover the market value of your damaged home immediately prior to it being damaged.
This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys or a property insurance disputes Miami lawyer and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.