What Is RCV/ACV And Why Insurance Companies Pay Claims That Way

What You Need To Know About Your Insurance Claim

Your claim paperwork will be mailed to you combined with a call from your ins. adjuster to explain that what they are saying is easy to understand and the paperwork is self-evident. Except, the paperwork is written in Greek and if you’re Greek it’s written in Mandarin and they will be hard to get ahold of.

LOL, okay, that might be a slight exaggeration, but the paperwork can be hard to understand, so I will try to help. Your ACV (Actual Cash Value) is the current value of your damaged property; roof, windows, cars, ect. The ACV is the first payment made on a claim and is intended to be the funds used to get the restoration started.

The ins. co. finds the ACV by estimating the RCV (Replacement Cost Value) which is what they think it will cost to fully replace/repair your damaged property. The RCV is the final payment the ins. co. will send and is intended to pay all invoices in full.

Please keep in mind the ins. adjuster is not a construction person or a car guy, so the first amount the ins. co. offers is just to get things started and is often low. You will need to speak with a licensed professional who is up to date on industry pricing to get a realistic number. In short supplements are almost always needed.