Understanding Your Insurance Estimate and Paperwork
Your insurance company uses specific software to compose the insurance estimate and quite often the estimates can be confusing and misunderstood. When you receive your insurance estimate please call your Annex Restoration Representative. We will schedule a time to review the estimate and explain the items recommended for replacement.
Reviewing your Insurance Estimate
Once your insurance claim is approved, you will receive a detailed estimate from your insurance company along with a partial payment for repairs. Usually the insurance check is mailed separately. The majority of insurance claims are paid in a two check process. The first check is to begin repairs; the second check is paid upon the completion of all repairs.
Q & A:
What does ACV and RCV imply on my Insurance Estimate?
The insurance settlement and payment is based upon your policy provisions, terms and coverage.
- The (ACV) represents (Actual Cash Value). Your first insurance check is paid based on the (ACV). This is usually determined by the age of your home and the current worth of your home today.
- The (RCV) represents (Recoverable Cash Value). This is the amount paid upon the completion of all repairs. If all repairs are completed, you will be paid the additional RCV.
This breakdown of your estimate can be confusing. Once all repairs are completed, there is no out-of-pocket expense incurred by you, except for your insurance deductible.
Why does my Insurance Check include the name of my Mortgage Company?
Your Mortgage Company holds the note or deed to your property and has a vested interest in the completion of all major repairs. The mortgage company is usually named on your insurance policy—therefore it is also included on your insurance claim check.
Your Mortgage Company requires you to provide certain documentation and paperwork in order for you to receive your initial check. Your Annex Restoration representative is very familiar with this process and can help prepare all the necessary documentation and paperwork.
Once the initial check is processed by your mortgage company, the check will be released back to you. This first check is usually a deposit for the purpose of initiating repairs to your home.
A difference in price between your contractor’s estimate and your insurance estimate is very common. Annex Restoration and your insurance company use very similar estimating software to determine the exact cost of repairs. However, due to local price increases, missed items and incorrect measurements you may notice a difference in the price of both estimates.
Your Annex Restoration representative will contact your insurance company and make necessary adjustments to the original insurance estimate. We will meet an agreed upon price for all repairs with your insurance company. This guarantees that you have no out-of-pocket expense for repairs, except for your deductible.
Your insurance rates do not automatically increase due to filing an insurance claim. Generally, when a storm is labeled a catastrophic event due to hail and wind, it will affect a large geographical area. The insurance rates of properties within the affected area may increase regardless of whether a claim is filed or not. You should always feel free to call your local insurance agent to discuss your individual circumstances and concerns.