Just got my home owner's insurance(Amica) renewal; they changed my roof coverage from replacement to "actual cash value", without asking me or any indication how much I am saving. The premium is $2,000 for $238,000 dwelling coverage-I have had one hail claim in 20 years. The thing is if the house ( house, is 60 years old), was to burn down I would not rebuild. Both the houses directly behind me and next door sold for $520k-$600k and were torn down, the house next door is currently under construction and has already sold for $1.5 million. It is my understanding if you do not rebuild the insurance company will only pay you Actual Cash Value. Now ACV is calculated by Replacement-Depreciation. Depreciation is 3.6% a year so after 27 years a house has $0 ACV. So am I correct that if my house was totaled and I did not rebuild I would collect nothing? Actually the value of my house/lot would increase by $30k if it burned down since it would save demolition cost. Would an insurance company write a policy for $50k coverage to cover damage to a room or two?
