Actual Cash Value VS Replacement Costs

  • Actual cash value is what you would pay for a similar item at today's cost minus depreciation(replacement cost minus depreciation).  Depreciation is a decrease in value due to wear and tear or age.
  • Replacement Cost is what you would pay for the item at today's cost(new item for old).

DP1 & DP3 (Rental Policies)

  • DP1 insurance policy is a named perils insurance policy.  This means that all the perils(aka cause of loss) that are insured are specifically listed (or named) in the policy itself.  The most common perils are fire, wind, vandalism & malicious mischief.
  • DP-3 Insurance has the most coverage compared to other DP policies. All perils are covered unless the policy specifically excludes or limits the coverage. Issues that are because of lack of maintenance or correct preventive maintenance usually are excluded as well as fraud and arson. Coverage will depend on your specific insurance company and the actual policy.

HO3, HO4, HO6 & HO8 (Homeowner Policies)

  • HO3 is the most commonly purchased policy, which is an all perils policy that covers any direct damage to the house or other structures on the property unless it is specifically excluded.  However, the coverage for personal property is for named perils only. HO3 is covered at replacement cost and replacement costs on contents is optional.
  • HO4 is a policy for renters of rooms, apartments, or houses. A lot of renters seem to mistakenly believe that their landlord's homeowners insurance policy covers their personal belongings. The landlord's insurance policy only covers the actual building you live in, not your actual personal possessions.
  • HO6 is designed for condo owners with an HOA.
  • HO8 is designed for older homes where you get actual cash value for the home

Assignment of Benefits

  • When a contractor wants you to sign a contract and says, "I will deal with the insurance company," call us first! You could sign all your rights away.