While it is a replacement cost policy and paid at
actual cash value until repairs are completed, when the difference between RCV and
actual cash value is returned to the insured, the language clearly states that the most paid out is the least (emphasis added) of policy limits, replacement with like kind and quality, or the amount actually spent to repair or replace the damaged building.
HO-8: Older Home--Intended for older or unique homes, this policy usually provides reimbursement based upon the home's market value (see
Actual Cash Value, page 264).
As an alternative, the insured may choose to accept a claim settlement on an
actual cash value basis rather than accepting the penalty for carrying a limit of insurance that is too low.
The insurer can pay the
actual cash value of the damaged or stolen property at the time of loss or it has one other option.
The court admonished insurers: "If it [the insurer] wants to determine
actual cash value on the basis of replacement cost less depreciation, all it has to do is say so in the policy.
Both auto insurance policies provide
actual cash value protection and have a $500 deductible.
The
actual cash value of the roof is the cost to replace it minus depreciation.
This statute essentially provides that when there is a total loss, the insurance company must pay to the policyholder the
actual cash value of the policy, namely the policy limits.
Some forms cover such property on an
actual cash value basis while others cover the property on a replacement cost basis without any deduction for physical depreciation.
In Patrick, the insurer paid the insured
actual cash value for damages from windstorm and held back depreciation until the insured completed the repairs.
The Portland-based company has offered to pay the
actual cash value of the damaged items.
2) if not repaired or replaced, the
Actual Cash Value.
