Insurance Claims 101: ACV vs. RCV Explained Simply

In This Video:

Join us as we dive deep into the concepts of Actual Cash Value (ACV) and Replacement Cost Value (RCV) in the insurance world. Learn how these foundational concepts impact the payment of insurance claims, and discover the nuances involved in calculating depreciation and determining the value of items at the time of loss. Whether you're an adjuster or a policyholder, this video will help you understand the key differences between ACV and RCV and how they affect claim settlements.

Key Topics Covered:

Introduction to ACV and RCV - Understand the basics of Actual Cash Value and Replacement Cost Value, and why they are essential in the insurance industry.

Replacement Cost Value (RCV) - Learn how RCV is calculated using current price lists and how it differs from the cost at the time of the loss.

Actual Cash Value (ACV) - Discover how ACV takes into account the age and condition of an item, and how depreciation is applied.

Real-Life Scenarios - Explore examples and case studies that illustrate the application of ACV and RCV in real-world situations.

Depreciation Explained - Get insights into how depreciation is calculated and why it matters in determining ACV.

Adjuster Guidelines - Tips for adjusters on following company guidelines and best practices for claim settlements.

Upcoming Topics - A sneak peek into our next video where we'll discuss how to apply and explain deductibles on Hurricane claims.

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[joshtirey]

Replacement cost value according to who, Xactimate? A 3rd party company dictates what the replacement cost value is? I’ve never seen a policy that states that. Insurance companies are dictating the RCV. If a insured/homeowner get 3 estimates from local retail contractors and the excuse is we only owe a reasonable amount and it doesn’t matter how much it actually cost and will only say we don’t match price but scope of work. It’s wrong to say homeowners will only pay their deductible unless they use someone that agrees to do the work for the price given by the adjuster with Xactimate pricing and they never update the price list. I feel this is video is misleading.