But there are some policies that provide coverage for actual cash value of the home (not including the lot). This might be the case for an older, run-down home, where the cost to rebuild would far exceed the value of the home, putting replacement cost coverage out of reach. In California, actual cash value for a dwelling is the same as fair market value, unless it's defined otherwise in the policy, Reitz says.But in states other than California, even replacement cost policies can include limitations on the settlement if you decide to buy another home instead of rebuild.
Buying Instead Of Rebuilding After Disaster
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.