Personal Property…continued
Posted on July 4th, 2011
Happy July 4TH! Stay safe and have a great time celebrating!
Let’s continue our discussion started in the last posting.
Actual Cash Value vs. Replacement Cost
In a recent posting we touched on the topic of calculating the actual cash value and replacement cost value. At this time, we’ll explain these concepts and why they are relevant to insurance claims and policyholders. As you review our website and search others about your insurance claim and recovery, you’ll learn that property damage is usually black and white (the pipe is broken, the roof is damaged, the wind smashed the windows); however, the value of the damage is often the subject of dispute. This is why insurance claims can take time and require a skilled individual that understands the determination of property value.
The most common method is Actual Cash Value (ACV) this is calculated to account for deprecation of the value of a particular item. This can be difficult for a policyholder to swallow because he is expecting to recover full value of the item purchased. The flip-side is that the insurance company wants to avoid paying a policyholder full value for an item that has deprecated. This is where the expert insurance claim adjuster will navigate to recovery.
The Replacement Cost Value (RCV) is a type of coverage that is used to cover the difference between the ACV and the cost of a new same or similar item. The difficulty of this type of coverage arises in situations in which the insurance company requires that the RCV is paid when the insurance companies have documentation that the policyholder purchased the item and needs reimbursement of RCV. This would mean that the policyholder comes out of pocket until the RCV is received.
The insurance claim adjuster will discuss the appropriate approach and decide with the policyholder how to move forward. There are many times that our experts are able to reach a settlement between the ACV and RCV, this way the insurance company pays less and the insured received more than the ACV.
If you have specific questions about your claim or recovery calculation it’s best not to pull out the calculator yourself but call a professional insurance adjuster at Stellar Adjusting Services.
Tags: actual cash value, miami insurance adjuster, replacement cost
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Actual Cash Value vs. Replacement Cost
Posted on May 27th, 2010
Let’s speak one on one: Rami Boaziz 305.467.5645
Knowing the details is very important to any insurance claim. These policies are complex and so is the claim process, a public adjuster will simplify the matter giving you a clear understanding. One of the most common questions is the bottomline when it comes to how payout is determined. A hot topic on this point is the differences between actual cash value vs. replacement cost.
The actual cash value is a formula that calculates the difference between purchase price and depreciation. Replacement value points to the cost of replacing an item of similar likeness in today’s market. This type of difference can mean a lot when it comes to money you receive. Your public adjuster will help guide you through this detail and determine if a policy change might be necessary or how recovery should be calculated based on your specific claim.
You can read more about Actual Cash Value vs. Replacement Cost or call Rami Boaziz 305.467.5645 and ask your questions directly.
Tags: actual cash value, replacement cost
Filed under Homeowners Policy | No Comments »
