What Is an ACV Loss Settlement?

When looking for Landlord Building Insurance In Ohio contact the insurance experts at 800-998-0662.

We can help you secure the appropriate coverage for your apartment buildings or single-family residence when you need landlord building insurance in Ohio.

Landlord Property Insurance Is Complicated!

Insurance is so much more complicated than the price you pay for it!™  That’s why it’s imperative that you investigate all your options as a landlord to protect your financial interests in your properties. 

One particular area that sometimes is neglected is understanding how depreciation works for buildings that you insure and own.

How Does Depreciation Work on Insurance?

Losses settled on an actual cash value basis (ACV) simply mean that a deduction for depreciation is taken into consideration when settling your insurance claim. 

For instance many of us aware automobile insurance claims are settled on an ACV basis. If you are unfortunate enough to total your brand-new vehicle just as you drive it off the dealership parking lot, your insurance company is not going to pay you full value for what you just paid for that vehicle! (Unless you have a special endorsement attached to your policy.)

How Depreciation Is Calculated? 

The first step taken by the insurance company is to determine the fair value of the property at the time of loss. In other words what would someone “pay” for that property based on the age, condition, and wear and tear of the damaged property.

For instance, if your insurance company considers the life expectancy of a roof to be 20 years and your roof is 10 years old at the time of a loss, the insurance company will (in addition to your deductible) subtract 50% from the loss amount!

So if the cost to replace a roof on one of your buildings is $37,000, the insurance company subtracts $18,500 because of depreciation and then subtracts your deductible from that figure. 

This is how depreciation works.

As you can see it’s important to know whether or not your losses would be settled on an actual cash value basis, or a replacement cost basis because your out-of-pocket expense could be significant.

ACV loss settlements could leave you in a deep hole financially, so choose your options wisely.

We Can Help You with Your Landlord Building Insurance in Ohio.

Because of the complexity of landlord insurance in Ohio, each property owner may have a unique situation.  Contact our agency at 800-998-0662 and we can help you secure the best landlord insurance coverage in Ohio. 

We represent insurance companies interested in insuring 1000 unit buildings as well as single-family residential units.  

If you are an investor of primarily single-family up to four unit apartment buildings, you can start an online quote by choosing: Landlord Property Insurance Cincinnati

Need insurance for your rentals in other areas?  See the community list below:

• Landlord Insurance Akron Ohio
• Landlord Insurance Sandusky Ohio
• Landlord Insurance Youngstown Ohio
• Ashland Ohio Landlord Insurance 
• Landlord Insurance Mansfield Ohio
• Landlord Insurance Toledo Ohio
• Landlord Insurance Cincinnati
• Landlord Insurance Dayton Ohio
• Landlord Insurance Hamilton Ohio
• Landlord  Insurance Springfield Ohio
• Landlord Insurance Wooster Ohio
• Landlord insurance Canton Ohio