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	<title>New answer on: What Is Replacement Cost In Home Insurance?</title>

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		<title>By: Jim Winkler</title>

		<link>https://insurancelibrary.com/home-insurance/what-is-replacement-cost-in-home-insurance</link>

		<dc:creator>Jim Winkler</dc:creator>

		<pubDate>Fri, 11 Apr 2014 16:14:47 +0000</pubDate>

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		<description><![CDATA[Great question! Homeowners and renters policies will define the payout for your belongings in most cases as either &quot;replacement&quot; or  &quot;actual cash&quot; value. There can be a big difference between the two, and as the insured, you&#039;d like &quot;replacement&quot;, and as the company, the &quot;actual cash&quot;. Here&#039;s why: Let&#039;s say you have a laptop that you bought a couple of years ago, and it&#039;s seen better days, it doesn&#039;t run quite as quickly as it did, and has a few dings and dents. When it comes time to replace it, replacing your computer with a new version of it is what you would get with &quot;replacement value&quot;. With &quot;actual cash value&quot; the company would take a look at the price for the new computer, and subtract off the depreciation cost for the length of time you had the old one. You might have to settle for a lesser laptop, or pay the difference in this case to receive the same laptop that the &quot;replacement&quot; version would have provided. This is a simplified explanation, but should give you a good understanding of the differences. If you would like more info, just hit the contact me button, I&#039;d be happy to help. Thanks for asking!]]></description>

		

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