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No, insureable value or 'stated amount' is the MAXIMUM that will be paid for that item. replacement cost is the amount it will cost to actually replace the item.
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What does replacement cost value mean?
The amount it would cost to buy a replacement for an item, of exactly the same age and in the same condition, or the an item of equally good characteristics if the original item cannot be reasonably easily purchased.
Why is insurable interst is required for all kind of insurance?
Without insurable interest we can not give any kind of insurance coverage as because before giving any insurance courage we informed that we will put him the same position as he was before . In that case i like to say that there must be a financial interest on it.
How can bonds issued by two companies paying same contractual interest rate be issued at different prices?
To calculate present value of the bond you also need to know market interest rate. If , for example these companies were issuing their bonds in the different time and market interest rate was different then bond could be sold at premium(the bond will cost more then its face value), par (same as face value), and discount (bond will cost less then face value.)
Is Marginal cost the same as opportunity cost?
No. Marginal cost is the added cost of producing one more of something. This type of cost is real and concrete; it actually has monetary value. Opportunity cost is more theoretical. It measures the amount of money / products that could have been made in places other than the job you are currently in. This is very similar to implicit costs.
If your home has increased in value due to the real estate market should you increase the coverage amount?
You should only have coverage on your homeowners insurance policy to cover the REPLACEMENT COST of the house. Market value incudes inflation as well as the land. These items are not covered in the policy.AnswerWe own two houses, one in a small town in western Kansas and the other in a small city in central Kansas. If they were both in the same location, they would probably be valued approximately equally, but in the small town that would be $45 - 50 thousand while in the city either would bring almost twice as much. However, the insurance on each is about $75 thousand, which is the insurance company's estimated cost to rebuild a similar home. Yes you should increase your your insurance coverage for replacement value at least. Some policies have platinum policies which are 110% of replacement value. The coverage is for the physical home. Most homeowners insurance policies include an escalation clause that will increase the coverage on your home periodically. This will occur due to rising supply building costs as well as labor. Both contribute to home costs that must be considered.
What does replacement cost value mean?
The amount it would cost to buy a replacement for an item, of exactly the same age and in the same condition, or the an item of equally good characteristics if the original item cannot be reasonably easily purchased.
Are Gross Earnings same as insurable earnings?
yes
How does replacement cost personal property work?
Replacement cost as it relates to your personal property allows for up to 400% of the actual cash value for full replacement of the contents. I will give an example of a 5 year old TV that was damaged. The 5 year old TV value is $200 so the insurance company will pay up to 4 times the value for replacement of the TV with one of like kind and quality if the same model is no longer available. They are usually very generous with items like this because of developing technology.
What do the terms RCV and ACV mean on a claim?
They stand for Replacement Cost Value and Actual Cost Value. Replacement cost value means the true cost to replace the item in today's market, meaning if you have damage to a roof and need to replace it the payment will be based on current market pricing. In an Actual Cash Value or ACV settlement in the same situation they will depreciate the roof by determining it's life expectancy and only pay you the depreciated amount. In some situations they will also depreciate a RCV settled claim but in that event you will typically have a specified amount of time to replace the item and have the depreciation reimbursed afterwards.
Should homeowner insurance be the same amount as the assessed value of a condo apartment?
No. The assessed value is for tax purposes and it is based on what should be the real estate value based on sales in your county. Depending on what kind of policy you have as your homeowner's policy you probably need the replacement cost value and not the real estate price.
How does the 5-Year Replacement Cost Advantage works?
If your car is declared a total loss within a period of up to 5 years of the time of purchase, the insurance company will replace it with a new one - the same model with the same options. That means there will be no depreciation of the value of your car. Please note that the original delivery date of the vehicle and the date the policy takes effect determine the expiry date of the Replacement Cost Advantage product.
How much would cannabis oil cost Is it the same as hash oil?
No, cannabis oil would not cost the same as the hash oil because their value is different.
Should it cost the same to crown a broken crown as putting in an original crown?
The laboratory fee to make the crown is a deciding factor in cost. the dental lab does not charge less to make a crown for replacement therefor price will be the same.
Explain why the book value of an asset is not necessarily the market value of that asset?
It is not same as market value because book value of assets derives from its cost and deduction of depreciation, while market value varies due to market conditions. That's why it may not be same.
Is it common for an insurance company to refuse to a replacement value policy on a house because it is too old?
I'm not sure its common but its also not unheard of. Generally an actual cash value policy is issued for properties in poor condition or in a high risk area. These policies are also often issued as a matter of economics as they are much less expensive than an replacement cost value policy. If you have shopped with more than one company and gotten the same result it is most likely due to the condition of the home and less about its age.
Is it worth fixing a seized engine on 1997 Honda CR-V?
Not knowing the mileage or the condition of the vehicle, this is a difficult question to respond to. CR-V engines are the same engines as in the Civic and they should be as common as dirt. But - whether you should buy a replacement or have the original re-built depends on too many factors that are unknown. Look at the cost of the re-build versus the replacement cost of the vehicle and/or it's value on the used car market. and make your decision.
Can insurance companies force you to get replacement value vs real value insurance on your home?
On a homeowners insurance policy you will have coverage based on the policy. You may be trying to fit a square peg into a round hole. If you purchase a replacement cost policy then yes you will be required to carry the amount necessary to replace your home or you will be penalized on any claims that occur. If you want to only cover the home for the actual cash value of the home then you need to purchase an ACV policy. This include the homeowners policy number HO-10, HO-8, HO-1 and maybe HO-2. On these policies you are only required to carry the coverage based on what the home is worth on an actual cash value. You need to deal with an independent agency so that they can get you the correct policy for the coverage that you desire. Older homes should not be insured under and HO-3 or HO-5 because they require you to carry the replacement cost with the same materials that originally were used to build the home. This is crazy because they will have to be special made and you would not want to build it using old type materials.
