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October 10, 2008, Newsletter Issue #102: Actual Cash Value Verse Replacement Cost Coverage
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Tip of the Week
When you are looking into renter’s insurance, see if your insurance company is offering “actual cash value” (ACV) or “replacement cost coverage” for your possessions. ACV will pay you what your property was worth at the time of it being damaged or stolen minus the deductible. Replacement cost coverage will pay you what it costs to replace the item minus the deductible. Replacement cost coverage is usually the better of the two options if you have a choice.
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