MANAGEMENT

Detailed explanation-1: -Pro: With a replacement cost policy, the money you receive in a claims payment will allow you to adequately replace your lost items.

Detailed explanation-2: -Replacement Cost Value (RCV) The amount of money needed to repair your home at today’s prices of building supplies; or replace your belongings at today’s cost of the similar or like item. It is important to discuss replacement cost with your insurance agent when purchasing your policy.

Detailed explanation-3: -An insurance premium is the amount of money an individual or business pays for an insurance policy.

Detailed explanation-4: -Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. It equals the cost of replacing the property.

Detailed explanation-5: -Agreed value waives any coinsurance penalty and pays 100% of the stated amount (agreed upon amount) for any covered loss. Replacement cost covers the amount it takes to replace your property with new property of like kind and quality up to the limits of insurance. Like ACV, replacement cost is subject to coinsurance.