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ACV vs. Market Value vs. Functional Value vs. Agreed Amount

Your insured buys a building for $250,000. The ACV of the building is closer to $750,000, but the insured only wants to insure the amount of his financial investment. Since coverage is usually based on ACV or replacement cost, underinsurance could result in a huge coinsurance penalty. What can you do?


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Alexandria VA 22314
​phone: 800.221.7917
fax: 703.683.7556

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