To qualify for actual cash value with no depreciation, what percentage of insurance must the insured carry?

To qualify for actual cash value with no depreciation, the insured must carry at least 80% of the property's replacement cost in insurance. This requirement is set to ensure that policyholders are investing a sufficient amount in their coverage to reflect the value of the asset they are insuring. When a policyholder maintains insurance that is at least 80% of the replacement cost at the time of loss, they can receive a settlement based on actual cash value without deductions for depreciation.

By carrying this percentage, the policy ensures that the insured is adequately covered and protects the insurer from excessive claims while promoting responsible underwriting practices. This concept serves to encourage policyholders to fully insurance their property, thus preventing underinsurance and promoting financial stability in the event of a loss. The threshold of 80% aligns with standard practices in the industry regarding property protection and compensation in times of claim.