06/03/2026
Man these insurance companies.
We have 7 jobs waiting on insurance checks. I feel bad for the owners of these policies.
Insurance is so important dont cheep out.
We have multiple customers with ACV policies and cant afford to get the job done.
Actual cash value. This is a policy that pays out only what the product is worth at time of damage.
Your roof is 20 years old and they approve but due to age only pay a small percent. Same goes for the interior damage.
A customer had an ACV policy her deductible is only $1000. Her home flooded her roof is terrible and they only offer a few grand.
She needs sheetrock work, attic insulation, plumbing repairs, kitchen cabinets and counter tops, flooring and a roof.
She now needs to find 15k to get the job done.
My advice is check and shop insurance. Be cautious of cheep out of state companies find someone local that you can trust is looking out for your interest.
Get a RCV policy. Replacement cost value.
This is a policy that pays out the full Replacement cost. They will send 2 checks. 1 for the ACV then a depreciation once work is completed.
RCV (Replacement Cost Value) and ACV (Actual Cash Value) are two different methods insurance companies use to calculate payouts for damaged or stolen property.The fundamental difference lies in how depreciation is handled:Replacement Cost Value (RCV)What it covers: The cost to repair or replace your damaged property with brand-new, similar items at today's market prices.Depreciation: Does not factor in age, wear and tear, or depreciation.Payout: Usually higher; you will get enough money to fully replace the item, minus your deductible.Pros/Cons: Offers better financial protection, but comes with higher monthly or annual premiums.Actual Cash Value (ACV)What it covers: The current value of the item at the time it was damaged.Depreciation: Does factor in age, condition, and wear and tear.Payout: Usually lower; you only get what the used item was worth right before it was damaged, minus your deductible.Pros/Cons: Cheaper upfront due to lower premiums, but can leave you with significant out-of-pocket costs to buy new replacements.A Quick ExampleImagine you have a 10-year-old roof that gets destroyed in a storm. A new roof costs \(\$20,000\) today, and you have a \(\$1,000\) deductible.With RCV Coverage: The insurance company pays to build a brand-new roof. You receive \(\$19,000\) (\(\$20,000\) replacement cost minus your \(\$1,000\) deductible).With ACV Coverage: The insurance company determines that because your roof is 10 years old and halfway through its 20-year lifespan, it has depreciated by 50%. They value the old roof at \(\$10,000\). Subtracting your \(\$1,000\) deductible, you only receive a \(\$9,000\) payout, leaving you to cover the remaining \(\$11,000\) out of pocket.Most standard homeowners insurance policies use RCV for the physical structure of your home, but often default to ACV for personal belongings (like furniture and electronics) unless you upgrade your policy.