The Difference Between Replacement Cost and Actual Cost Value

Taking a closer look at home insurance replacement cost and actual cost value When purchasing home insurance, you will be given the option to choose which type of replacement policy is the best suited for your needs, a replacement cost policy or an actual cost value policy. It is important to understand the difference between the two policies to ensure you are getting the coverage that is going to fit into your budget as well as provide sufficient coverage for you home and personal belongings. Replacement Cost Replacement cost means…

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How to prepare an insurance agency to be sold

The perceived value of an insurance agency is impacted by a number of different factors, but there are three among them that will have the greatest influence. These three critical factors are the same as those that would influence the perceived value of any type of investment, and are: • Market conditions • Pro forma earnings • Risk connected with earnings in the future Market conditions are vital to the sale of any form of investment, and timing can significantly influence the sale’s net gain. The parts of market conditions…

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