Other Methods of Insurance Valuation
Insurance policies may be purchased utilizing several different valuation methods. These include: Replacement Cost Value (RCV), Fixed Value (Guaranteed Replacement Cost) and Actual Cash Value (ACV). Some policies will use different valuation methods depending upon the item. For example, the building may be insured at Replacement Cost Value, the most of the contents insured at Actual Cash Value and a few specific items at a Fixed Value (antiques). Policies may also include co-insurance clause or deductibles provisions which will impact the actual cash paid out by the insurance company.
Read more about this topic: Actual Cash Value
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