Replacement Cost vs Actual Cash Value in New Brunswick Home Insurance
FCNB distinguishes actual cash value, which reflects depreciation, from replacement value, which can pay the cost of replacing covered property with a new equivalent subject to policy conditions. That difference can materially change a contents claim even when the cause of loss is the same.
What to know
Use this as research context and verify the current policy wording for a real property, renewal or claim.
Use this as research context and verify the current policy wording for a real property, renewal or claim.
Use this as research context and verify the current policy wording for a real property, renewal or claim.
Use this as research context and verify the current policy wording for a real property, renewal or claim.
The valuation method changes the settlement question
Two policies can insure the same television, furniture or household contents against the same peril but produce different settlements if one uses depreciated actual cash value and the other uses replacement-value terms.
Replacement value does not mean unlimited reimbursement
Limits, sublimits, exclusions, deductibles and replacement conditions can still apply. The valuation label should be read together with the rest of the contract.
Use a home inventory to make the valuation discussion real
A room-by-room inventory with approximate purchase dates and replacement costs is more useful than guessing a round contents total after a loss.
Check the current New Brunswick source
Hazard maps, emergency guidance and insurance consumer information can change. Use the official source below before making a property or claim decision.
FCNB — Home and Tenant Insurance →