06/08/2026
Not all insurance is equal.
Many competitors are offering lower rates by offering lower coverages.
Do you know the difference between Replacement Cost vs. Actual Cash Value?
Replacement Cost - pays to repair or replace your damaged property with new items of similar kind and quality, without deducting for age or wear and tear.
Actual Cash Value - pays the current value of an item at the time of the loss, taking devaluation into account.
Example: If your 10-year old roof is damaged by a storm and a new roof costs $15,000:
-Replacement Cost coverage may pay up to the full cost to replace it (minus deductible).
-Actual Cash Value coverage may only pay what that 10-year old roof is worth today, which is significantly less.
When shopping policies, pay attention to this coverage specifically for roof coverage and personal property coverage. These coverages are both standard at Replacement Cost in the base State Farm Homeowner's Policy.
Not sure the type of coverage you have? Reach out and we can review your policy to make sure you understand your coverages.
Thats's the benefit of a local agent. You call and a REAL person will answer.
312-508-3495
