Sentences with phrase «on a replacement cost basis because»

Though, experts usually recommend insuring your property on a replacement cost basis because if you bought an item several years ago, its current value may be considerably less than the total cost of replacement.

Not exact matches

Because replacement cost value policies tend to pay out more (since they aren't based on depreciated value), they also tend to cost more than actual cash value policies.

Co-Insurance can have a drastic affect on how an insurance loss is valued because not meeting coinsurance requirements can mean you receive payment based on Actual Cash Value instead of Replacement Cost.

Because replacement cost value policies tend to pay out more (since they aren't based on depreciated value), they also tend to cost more than actual cash value policies.

Property insurance policyholders will usually prefer payment based on the replacement cost of damaged or stolen property because it compensates a policyholder for the actual cost of replacing property.

This may be because home insurance policies are often believed to provide coverage based on a home's market value, as opposed to its replacement cost.

It is good because your policy should be based on replacement costs, not on the value of the FL property at the time you purchased the online renters insurance protection.

For example, if you've just purchased a derelict home that you intend on tearing down to rebuild, you will want to insure it on an actual cash value basis because there is no point in getting replacement cost (see our Q&A on How Should I Insure a Vacant Building to learn more).

Such coverage is often worth the extra cost, he said, because standard coverage provides payments based on the depreciated value of an item or improvement while replacement cost coverage provides the amount needed to replace each covered item at today's prices.