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In today's coverage, Mike Crowley discusses the difference between replacement costs and actual cash value in homeowners insurance. A common concern arises when clients see coverage limits that exceed their property's assessed value, leading to confusion about the high coverage amounts. Crowley explains that homeowners insurance should be based on replacement cost coverage, which determines how much it would cost for an insurance company to rebuild a home at current construction prices in the event of a total loss. He emphasizes that many insurance carriers require full replacement costs for homeowners and other properties owned.