Replacement Cost vs. Acutual Cash Value
Replacement Cost vs. Acutual Cash Value Read More »
The DP-1 and HO-8 policy forms do not define ACV and that can leave it to case law. Some courts have interpreted ACV to mean fair market value, i.e., the amount a willing buyer would pay a willing seller in an arm’s length transaction. Other courts have upheld the insurance industry’s traditional definition: the cost to replace
Actual Cash Value (ACV) Read More »
Did you know that the Iowa FAIR Plan Association offers a Homeowners policy? It is the Homeowners 8—Modified Coverage Form. This policy provides named perils coverage on the dwelling and contents on an Actual Cash Value basis. Actual Cash Value (ACV) is replacement cost less any depreciation. Also, the policy provides: Coverage A (Dwelling): At least $40,000
HO-8 — Modified Coverage Form Read More »