What does R/C stand for in my insurance policy?
I have something listed as extended R/C and I'm not sure what it means. I don't remember agreeing to anything with that name, so I'm not sure what the coverage could be for.
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Answered on Jul 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“The abbreviation R/C stands for replacement cost in home insurance. Extended means additional coverage.
Replacement cost is an important part of home insurance as it determines how an insurance company will pay out a claim.
Replacement cost, sometimes called replacement value, is when an insurance company replaces damaged property with property of similar kind and quality without depreciation.
The other type of loss valuation you will see on a policy is actual cash value. Actual cash value is the replacement cost of something minus depreciation. Most personal property on a home insurance policy will also be paid out at an actual cost value basis.
Every carrier is different, so reach out to your insurance company for specific details about your coverages.”
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