Payment Decoded
Understanding ACV vs RCV Before You Sign
The ACV vs. RCV Surprise
Most claim frustration starts when a homeowner reads a payment statement without knowing which line controls the cash.
| Term | Plain-English Meaning | Homeowner Watchpoint |
|---|---|---|
| ACV | Actual Cash Value: replacement cost minus depreciation. | The first check may be lower than the full repair cost. |
| RCV | Replacement Cost Value: pays based on repairing or replacing with similar kind and quality today. | Depreciation may be held back until work is completed and invoices are submitted. |
| Deductible | Your out-of-pocket portion of the covered claim. | In Utah, contractors may not rebate the deductible to win the job. |
| Supplement | A request for missed or changed items after the initial scope. | Forensic photos and code items must support these requests. |
Recoverable Depreciation
On an RCV policy, the "depreciation" (the value lost due to age) is often held back by the carrier until the job is finished. You must provide a final invoice and photos to "release" this cash. We help our clients manage this paperwork to ensure no money is left on the table.
Matching Rules
Utah's claim settlement rules include specific language for "reasonably uniform appearance." If a repair doesn't match your existing roof in color or texture, you may be entitled to a full replacement under the matching rule.
Deductible Reality Check
Utah law prohibits a residential contractor from rebating or offering to rebate any portion of an insurance deductible as an inducement to sell repair work.
That means "we will cover your deductible" is not a harmless discount. It is a red flag. Plan for the deductible honestly and ask us about financing options if needed.
Ask Your Agent:
Ask for a Professional Review
Confused by your payment breakdown? Send us your estimate and we'll help you decode the numbers and identify any missing items.