Opening a property claim can be tedious, and many homeowners do not know the steps to take for a successful turnaround. For instance, policy owners who open a property claim need to notify insurance companies about seeking payment for damages at the Replacement Cost Value (“RCV”) within 180 days of the date of loss. Otherwise, the insurance company may only pay for the Actual Cash Value (“ACV”) of the damages, withholding depreciation.
What is the difference between RCV and ACV?
RCV is a policy type where the insurance company pays the policyholder to repair or replace the property with a new item of similar kind and quality. On the other hand, ACV is a policy type where the insurance company pays the policyholder to replace the property, but the depreciation value is withheld. Depreciation is the amount of wear and tear an item incurred before the loss occurred.
Providing RCV Notes to Insurance Companies
Policy owners can provide notice to their insurance companies by sending a written note advising of their intent to claim the total RCV amount per the 180-day provision found in the insurance policy. Any further communication on the matter should be done through writing for personal records.
Contact the Gelber Law Group for more information
Living with property damage can be stressful, and the insurance claim process can be lengthy. If you encounter property damage and your insurance claim has been wrongfully denied or underpaid, contact Gelber Law Group, PA to assist you with a free consultation at 954-320-0100.