20 May HOW TO READ YOUR INSURANCE CLAIM PAPERS
Insurance companies have made reading and understanding your insurance claim nearly impossible for homeowners these days. Not understanding your insurance claims papers could end up costing you thousands.
We have a way of explaining the entire process that makes it much easier, ensuring that homeowners are in complete control of their insurance money.
R.C.V. = REPLACEMENT COST VALUE: The replacement cost value is your insurance companies way of saying; “Hello Mr./Mrs. Homeowner, we are agreeing that it should cost you this amount to repair all of the damages listed in our summery.”
DEDUCTIBLE: The Deductible is your insurance companies way of saying “Hey, wait a minute Mr/Mrs. Homeowner, out of the R.C.V. amount that we owe you….,you are responsible for the deductible amount, so we are backing the deductible amount out of the R.C.V. money and we are keeping it.”
DEPRECIATION: Depreciation is your insurance companies way of saying, “Hey Mr./Mrs. Homeowner, now that we have backed out your deductible, we are now going to keep some of the remaining money until you actually do the work. Until you do the work this all all we owe.
Right now, we only owe you for the “value” of the damaged items at your home, exactly as they sit right now. We do not actually owe you for replacing those items until you actually replace them.
ACTUAL CASH VALUE: The actual cash value is your insurance companies way of saying: “Hello again Mr. /Mrs. Homeowner, now that we have backed out your deductible and a depreciation until you actually do the work, this is the amount that i owe you right now.
The ACV amount, is all that we owe you right now until you actually do the work. If you actually do the work and prove to us that the work has been done, we will mail you the DEPRECIATION money that we are holding back, usually within 1 to 2 weeks of you completing the work.”
Long story short, your insurance money is your insurance money. Not your contractors. Contractors are banking on the fact that you do not understand your claim and are hoping you will just let them do everything for you. Do not be fooled. Claims area easy. They are just written confusing.
A quick rule of thumb for determining exactly how much your insurance company will be paying you in total, is to add together the amount of your first check (A.C.V) to any recoverable depreciation amount being held back. Those 2 amounts added together is how much you will be getting in total from the insurance company after the work is complete. Compare that amount to your written roofing estimates to ensure you have been paid enough. If the roofing company was honest in their estimate and was not just trying to get all your insurance money, then you should have been paid enough to cover their estimate.