There are several different types of insurance polices. The two basic policies are Actual Cost Value ACV’ and Replacement Cost Value RCV policies. An Actual Cost Value policy will only pay for what the actual value of the property that is damaged . An Replacement Cost Value policy will pay for what it costs to replace the property completely.
Replacement Cost Value vs Actual Cost Value
Replacement Cost Value is determined by what it costs to replace the damages to your property using new products. The Actual Cost Value is what the damages are worth today.
Roofing Example:
Your Roof is damaged is by a HAIL STORM your roof has a 25 years of life expectancy, if the roof is 10 years old , it still has 15 years of useful life, or 60%. If it determined to cost $10,000 to replace the damaged roof, you would receive $6000 for the roof.
If you have a” Replacement Cost Value” policy once the roof is replaced the insurance company would pay the addtitionally incurred cost of $4000.
If you have a “Actual Cash Value policy” you would be responsible for the additional costs incurred.
If you are looking for a licensed Roofing and Siding contractor in the Twin Cities MN Area call NORTH END CONTRACTING at 651-488-8605. NORTH END CONTRACTING OFFERS FREE STORM DAMAGE INSPECTIONS. Service areas include the Twin Cities, MN.
Residential Roofing Services ( GAF, OWENS CORNING, IKO, TAMKO)
Residential Siding Services ( CERTIANTEED, PLYGEM MASTIC, )
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