Replacement Cost: Where exactly is the replacement cost located on a home owner's policy. There is:


A: Dwelling 122,000
B: Other Structures $12,250
C: Personal Property $34,000
D Loss of Use : $12,000

Ask the agent. But if those are the limits written into the policy then it may not cover replacement costs.

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Originally Posted by ScottGem

Ask the agent. But if those are the limits written into the policy then it may not cover replacement costs.

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Thank You

Replacement cost is not on the policy, the limits are. Personal property seems low for contents coverage, normally is 50%. You pay a little more for replacement contents coverage otherwise you have what is known as ACV, average cash value. What may happen is you put a coverage on a building and after a review of the replacement cost, the company will require you have at least 80% coverage, otherwise you will have a coinsurance penalty in case of a loss. Lets say the replacement cost is $100,000 and you only have $50,000. If you have a $20,000 loss, you will only get $10,000. Talk to your agent. Google "replacement cost vs. ACV" for more info.

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Originally Posted by ma0641

Replacement cost is not on the policy, the limits are. Personal property seems low for contents coverage, normally is 50%. You pay a little more for replacement contents coverage otherwise you have what is known as ACV, average cash value. What may happen is you put a coverage on a building and after a review of the replacement cost, the company will require you have at least 80% coverage, otherwise you will have a coinsurance penalty in case of a loss. Lets say the replacement cost is $100,000 and you only have $50,000. If you have a $20,000 loss, you will only get $10,000. Talk to your agent. Google "replacement cost vs. ACV" for more info.

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Thank you. Paying $3,200 annually now. For a 1,900 sq.ft house

What ISO class are you? That seems very high for that limit, even if a Class 10.

Property Insurance is high in Florida