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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.
When an insurance policy covers replacement value a loss results in a settle ment that pays for what?
When an insurance policy covers replacement value, a loss results in a settlement that pays for the cost to replace the damaged or lost item with a new one of similar kind and quality, without deducting for depreciation. This means the policyholder receives enough funds to purchase a new item that serves the same purpose as the original, ensuring they can restore their assets to their pre-loss state.
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 the cost of capital equivalent to the discount rate?
No, the cost of capital is not necessarily equivalent to the discount rate. The cost of capital represents the cost of financing a company's operations, while the discount rate is used to calculate the present value of future cash flows. They can be related in certain financial models, but they are not always the same.
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.
Can you have replacement cost and agreed value?
Yes, you can have both replacement cost and agreed value in different contexts or policies. Replacement cost refers to the amount it would take to replace an asset with a new one of similar kind and quality without depreciation, while agreed value is a pre-determined amount that both the insurer and policyholder agree upon for an asset, regardless of its current market value or replacement cost. Typically, these terms apply to different types of insurance policies or to different assets within the same policy. It's important to understand the specifics of your policy to know how each term is applied.
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.
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.
What is the value of a 100 bill with star note?
A $100 bill with a star note is still worth $100. The star note is a replacement for a bill that was misprinted or damaged during the printing process, and its value is the same as a regular bill of the same denomination.
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.
