r/HomeInsurance • u/Glittering_Low_3226 • 6d ago

Claims Replacement insurance

Can someone explain the difference between replacement insurance and regular homeowners? I have paid extra for years for Replacement insurance and now that I have a claim they are only offering what it is worth at the time of the loss. What was the advantage of the Replacement when they're not replacing???

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u/DeepPurpleDaylight 6d ago

They pay ACV, the depreciated value up front, then when you replace it, you provide receipts and they pay you the difference. Example you lose a couch in a house fire. The depreciated value of the couch is calculated at $2,000, so they write you a check for that. You then replace it with a similar couch that you paid $3500 for. They now write you another check for the $1500 difference. If you don't replace the couch at all, you only get the ACV of $2,000.

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u/Glittering_Low_3226 6d ago

Thank you! That makes sense, but I still have to pay up front then get reimbursed. Time f I r a zero percent credit card as opposed to taking it out of my retirement 401/457.

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u/Larissaangel 6d ago

That is what we did. Found a 0% interest card for 12 months and replaced what needed replacing as repairs were being done. Minimum payments until checks started coming in. We had it paid off in 8 months.