Updated over 6 years ago on . Most recent reply
Can i choose the amount i want to insure for?
Im looking for help from someone that knows insurance well. looking through the forms I see there is cash value, and replacement value insurance. Do you know if there is a way to insure a property for a lesser value that I determine? ie, if i want to insure a building that has a replacement value of 1,000,000 for 200,000 in a effort to save on premiums?
Most Popular Reply
#1 Insurance Contributor
- Insurance Agent
- Norwalk, CT
John,
As Jason said, there are some companies that will insure for less than Replacement Cost (RC). The thing to watch for is what will happen on a partial loss. Many policies have penalties if you do not maintain a specified percentage of the RC (typically 80%).
If you chose to insure at the Actual Cash Value (ACV) your limit will be less than the RC limit. On a loss, the claim payout will be reduced for the depreciation.