Long, long story short we had a broken water drain pipe in my house. Water damage galore. My mother is the policy holder. We didn’t know how the process worked and we were under the impression that if we didn’t go through the insurance suggested contractors the full cost might not be covered, so we went with the one and only company that they suggested.
They started working last month. They were almost finished, however, they needed to rip the flooring and subfloor back up again due to improper installation. We lost confidence in this company and want to go with a company of our choosing.
We literally just got a letter in the mail a month later from our insurance company listing RCV and ACV for the damages. My question is should the insurance company supplied us with this before we had started with their recommended company? Feeling kindof lost, and not sure how this works. Hopefully there isn’t a next time, but next time we file a claim due to damages do we wait for the cost estimates. In all honesty if we knew what amount we were working with we would of selected a contractor of our choice who we were happy with.
Question regarding receipt of ACV/RCV payouts Home insurance
byu/rockofludo inInsurance
Posted by rockofludo
1 Comment
Do you have an RCV policy or ACV policy? That’s what going to determine what is paid out, regardless of the repair vendor.
Now a lot of RCV policies are initially paid out as ACV but it is recoverable and depreciation is reimbursed after repairs are completed.
Sure the insurance company should’ve alerted you about your ACV policy but it’s not a requirement. The Dec page is what ultimately notifies you of your coverage.