What is the Difference Between Replacement Cost Value (RCV) and Actual Cash Value (ACV)?

Jorge Cruz-Bustillo | Chartwell Law The takeaway from this article is to understand that the acronyms of RCV and ACV simply characterize the inclusion or exclusion of recoverable depreciation. These terms do not, under any circumstance, reflect the “scope of the damages” required to be paid at the time of the initial coverage decision. Replacement… Continue reading What is the Difference Between Replacement Cost Value (RCV) and Actual Cash Value (ACV)?

ACV And RCV: Are Courts Respecting The Difference?

Mary Alice Jasperse | Drew Eckl & Farnham A continual issue that our clients have seen is for contractors and public adjusters to attempt to blur the distinction between ACV and RCV figures in an effort to recover RCV upfront and without incurring the RCV expenses. In appraisal, this circumstance can arise when a policyholder demands appraisal… Continue reading ACV And RCV: Are Courts Respecting The Difference?

Paying Overhead and Profit in First-Party Claims

Gary Wickert | Claims Journal | October 31, 2019 Standard homeowner policies pay personal property claims at actual cash value (ACV), which is the replacement cost (RC) of the damaged property based on its current used condition. In other words, it is valued at what it would cost to replace the property at today’s cost… Continue reading Paying Overhead and Profit in First-Party Claims

Insuring To Value is a Difficult Underwriting Requirement Making Underinsured Structures Quite Common

Chip Merlin | Property Insurance Coverage Law Blog | September 23, 2019 Insuring to value is becoming an increasingly discussed topic with so many buildings underinsured. I noted this problem in a recent post, Do I Have Enough Insurance? Underinsured Homes Are Epidemic.  I was with Amy Bach at a United Policyholders fundraising evening on Saturday night. It reminded me… Continue reading Insuring To Value is a Difficult Underwriting Requirement Making Underinsured Structures Quite Common

All Acquisition Costs Should Be Included For Replacement Cost Values

Chip Merlin | Property Insurance Coverage Law Blog | August 17, 2019 Insurance company adjusters often leave off the reasonably expected acquisition costs when determining replacement cost. While the actual pricing can become theoretical, the bottom line is that these acquisition costs can be a material cost and every adjuster should include them when determining… Continue reading All Acquisition Costs Should Be Included For Replacement Cost Values

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