Received Insurance Check for ACV Bootscoot asked 9 months ago
Received Insurance Check for ACV


I received an initial $17,000 check from my insurance company for my home covering the “ACV” of several line items related to the “Dwelling” portion of the home. Approximately $13,000 “ACV” is stated on the claim report as associated with the roof replacement and the remaining $4000 is fragmented into pieces and parts for fascia, one shutter, one window and one wood column.

I am planning on replacing the roof using the $13,000 roof “ACV” and then submitting a receipt for the roof job which according to a roof proposal may cost approximately $19,000 total. The “RCV” for the roof portion indicates that I can recover up to $7,000. So, it appears that using $13K of the original check and then receiving a second check of approximately $6000 will cover the total job for the roof and be within the amounts allocated on the claim report for the roof “ACV” and “RCV” from what I understand.

If I am on the correct track so far, my question centers around the remaining $4000 from the original check for dwelling “ACV” that hasn’t been used to this point for the various line items such as the fascia, shutter, window and wood column. None of the amounts allocated to any of these line items mentioned allow for a “complete job”. For example; I have enough money to replace/paint “one” shutter based on it’s combined “ACV & RCV” but not enough awarded to possibly paint the remaining 4 shutters and make it a complet job. The same would hold true for the fascia, windows, and wood columns.

So it appears to me that the combined “ACV & RCV” for any of these items does not allow for a complete job but I have $4000 remaining from the original check for all of the singular item’s “ACV” combined.

Do I simply pick one of these items and use the $4000 to do a complete job for one and not bother with trying to recover any “RCV” for any item at all? OR just do nothing and leave the $4000 in the bank?

Please advise!


1 Answers
Galen Hair Galen Hair Expert answered 7 months ago

Your question is very detailed and I am sorry that you are trying to navigate this situation. You are hitting perfectly on two major issues. The first issue is ACV versus RCV. In other words, Actual Cash Value versus Replacement Cost Value. Actual Cash Value is the cost to restore the item to the condition it was in the moment just before the storm (this is not an exact way to put it, but it helps). Replacement Cost Value is the cost to completely restore the damaged item. The difference between the two is commonly known as depreciation. If you have a policy that allows you to recover RCV, then you have what is known as “recoverable depreciation.”

Your math seems to be spot on. If your RCV estimate allows you up to $20,000 to do the roof and you spend $19,000 you should be paid a total of $19,000. Note that you will probably need to submit a signed contract, invoice, and photographs showing the job is complete.

The bigger and more frustrating issue is that it sounds like maybe your claim is being underpaid. I cannot know that for sure without seeing everything, but you very clearly explain that none of these amounts seem to be enough to actually restore you to the condition you were in before the storm. It is time to consider either getting help or at least explaining to the insurance carrier that this estimate is not going to make you whole and tell them why to the best of your ability. You seem to have a good grasp on the issues so if you aren’t comfortable getting help, I would, at a minimum, explain to the carrier that you don’t feel as though the amounts they have estimated for are sufficient.

This comes up a lot when there is an underpayment – this question about whether to do some of the work or none of the work. Ultimately this is your decision and your decision alone. I do like to make sure that you understand the consequences. It is not insurance fraud to keep the $4,000 and not do the work, but it does have consequences. Let’s say in two or three years, your house is hit by another storm. Most insurance companies are not going to pay for the same component of the house twice if they previously paid for that component and it was not fixed or replaced.