Insurance paperwork not only looks overwhelming but have many acronyms you might not be familiar with. We created this page to help you understand the language your insurance uses when processing a claim. Here are some of the most frequently asked questions.
What is RCV?
RCV stands for Replacement Cost Value.
Replacement cost: The cost to repair or replace the damaged item with an item of like kind and quality without any deduction for depreciation.
What is ACV?
ACv stands for Actual Cash Value.
Actual Cash Value: The cost to repair or replace the damaged item with an of like kind and quality, less the depreciation.
What is the Depreciation?
Depreciation is the amount deducted from the replacement cost based upon the age and condition of the item being replaced. It is the difference between RCV and ACV.
What is a Deductible?
For each loss, the amount you chose to be your responsibility before your policy coverage begins to pay. Your claim adjuster will let you know when this amount is needed or how it will change your settlement.
Why is my mortgage company listed on the estimate?
An insurance policy is a contract with you, us and many named interests (mortgage companies) listed on the policy. Some insurance companies are required through the terms to protect their interests as well.
Do you still have questions? Please contact us if you need our help. TEL: (773) 948-4080 Ferravit Corp.