Insurance
Most property policies pay claims in two stages, and the vocabulary — ACV, RCV, depreciation — confuses more policyholders than any other part of the process. Here's the plain version.
RCV: what it costs to put things back
Replacement Cost Value is the cost to repair or replace the damaged property with materials of like kind and quality at today's prices. The adjuster's estimate builds this number line by line: tear-off, materials, labor, disposal, and so on.
ACV: RCV minus age
Actual Cash Value is RCV minus depreciation — a deduction for the age and condition of what was damaged. A 12-year-old roof with a 24-year expected life may be depreciated substantially; a 2-year-old roof, barely at all.
How the money actually flows
On a replacement-cost policy, the first check is typically ACV minus your deductible. The withheld amount — recoverable depreciation — is released after the work is completed and documented: signed contract, completion certificate, final invoice. If your policy is ACV-only, depreciation is not recoverable, which is worth knowing before storm season rather than after.
Your deductible is really yours
The deductible comes out of your pocket by design. A contractor offering to “waive” or absorb it is proposing insurance fraud with your signature attached — several states have made this explicitly illegal. Walk away.
Where claims go wrong
Underscoped estimates that miss code-required items, missed supplements when hidden damage surfaces mid-project, and incomplete closeout paperwork that leaves recoverable depreciation unclaimed. Careful documentation at every stage — built into every project file we run — is the fix for all three. See the full process on our insurance claims page, or start with a documented inspection.
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