Residential Property Insurance

ACV vs RCV

Policies pay different amounts to fix or replace property, home, or personal things. Usually, you have to pay part of the cost yourself. That amount is called the deductible. After that, how much money you get from the insurance company depends on whether you have “replacement cost” (RCV) or “actual cash value” (ACV).

*⃣Most companies pay you only part of the RCV first. You will have to prove that you fixed your home, or replaced or fixed personal things before you get the rest of the money.

Other Terms to Know

Claim – a request made to an insurance company to pay for damage or injury.

Coverage – the damage or injuries an insurance company agrees to pay for under the policy.

First-party claim – a claim filed by you against your own insurance policy.

Policy – a contract between you and the insurance company. The policy tells you what’s covered and what the insurance company is required to pay.

Third-party claim – a claim you file against another person’s insurance policy or a claim someone files against your policy.

More Terms to Know

Claim – a request made to an insurance company to pay for damage or injury.

Coverage – the damage or injuries an insurance company agrees to pay for under the policy.

First-party claim – a claim filed by you against your own insurance policy.

Policy – a contract between you and the insurance company. The policy tells you what’s covered and what the insurance company is required to pay.

Third-party claim – a claim you file against another person’s insurance policy or a claim someone files against your policy.