ACV = Actual Cost Value
RC = Replacement Cost
ALE = Additional Living Expenses
SPP = Scheduled Personal Property
Homeowners insurance: get familiar with your policy now before something bad happens
- Thread starter LightningCrash
- Start Date
RC = Replacement Cost
ALE = Additional Living Expenses
SPP = Scheduled Personal Property
Collectibles includes basically ALL related items too. Belts, holsters, cases, ammo, etc., I think even the safe and even when you are traveling. That stuff adds up so figure it all in.
I had a $300 claim on a competition belt and holster setup that got stolen. They didn't bat an eye on covering it. Until it was time to renew that is, then they didn't want to renew my policy for the next year. Jason got ahold of them and explained that it was he himself that encouraged me to make the claim in the first place. They reviewed it and ended up renewing it. I asked him why they were canceling and he said it was that the claim was "too far below the written policy amount". Insurance is a really strange business.
Flood insurance is not what you think sometimes.
Now days everybody needs it I think.
A show on tv was going through a segment about flood insurance and they said;
If a limb falls thru your roof most policies will pay for the roof repair. But not the water damage inside.
That is now considered flood damage!
If a pipe breaks and floods your house your out of luck unless you have flood insurance.
So, you can live on the highest mountain in Ok. and still need flood insurance.
Check and understand your policy.
Now days everybody needs it I think.
A show on tv was going through a segment about flood insurance and they said;
If a limb falls thru your roof most policies will pay for the roof repair. But not the water damage inside.
That is now considered flood damage!
If a pipe breaks and floods your house your out of luck unless you have flood insurance.
So, you can live on the highest mountain in Ok. and still need flood insurance.
Check and understand your policy.
This is not necessarily true.
I had a pipe break last year, the day after Xmas. I do not have flood insurance.
The break flooded 2 bedrooms, part of a 3rd. It flooded 2 closets, and the central hallway in our modest home. About 2" of water throughout.
Insurance paid all of it. They didn't have a problem with the water damage, but I had to fight to get them to pay for the pipe repair.
No kidding, the adjuster tried to tell me that the burst pipe (frozen) was normal wear and tear.
RC/ACV typically refers to the structures and/or contents. I'll make examples with both. Dwelling damage - You have an old HVAC system that gets burned up in the fire. A replacement of a similar kind and quality system is $8000. Yours was really, really old, in fact it was probably 75% down the hole of its usable life. You get $2000 towards replacement on an ACV policy. RC policy - You get $2000 up front on an RC policy, but they give you the remaining $6000 when you replace it. (In practice they worked much much more in my favor on old mechanical).
Contents - You have an old dryer. It's worth $50 at the used mart. It gets burned up in the fire. ACV contents, you'd get $50 for that dryer. RC contents - $50 up front, and you can be reimbursed for the remainder of whatever a new dryer of similar kind and quality would cost.
ALE - your house catches on fire. The ALE portion of your insurance coverage puts you up in a hotel for 3 weeks, finds you a rental, and puts you up in a rental while repairs are completed to your home.
Seems like you guys grok SPP so I won't worry about that. In my post I misused the term, I was trying not to refer to CC coverage, but SPP was wrong too.
What blew my mind with the fire is how much just cleaning things cost... it was $10,000 for cleaning my textiles. It was $15,000 to clean my contents. That's before I got to anything that was just a loss. But they flat out emptied my house and cleaned my things and the house top to bottom.
This information is incorrect. Flood insurance would not cover the limb through your roof or pipe breaking in your house. Flood insurance may be offered by your local agent but the policy is underwritten by FEMA. You can do some research and see what is covered and how a claim is triggered. The two items above should be covered by your home owner's policy. This information may have come from some sort of misleading infomercial.
The biggest thing to look at on your homeowner's policy is ACV v. RV. In OK, most claims are roof claims. We have so much hail and wind damage here that many insurance companies in OK moved from RV to ACV. I had State Farm on my investment properties for years but they will not even allow me to purchase RV on an investment property. I switched all my policies to Allstate and got the same coverages for basically the same money but with RV instead of ACV.
You should still compare all of your coverages and don't be afraid to ask your agent to give you multiple quotes based on multiple amounts of coverage. Purchasing more coverage than you can use, will do you no good because they will only pay out your actual loss. For example, if you have a 1,000 sq ft. house and the going rate to have it rebuilt is $100/ft., the insurance company is not going to pay you $250,000 for your house because you carried that much in coverage. They are only going to pay your for $100,000. So, carry the appropriate amount of coverage. If you are insuring high value personal items, it is a good idea to document those items so you can prove your loss in the event of a total loss.
Also you usually don't get the payment for depreciation until you (or your contractor) shows that the repairs have been made.
Sometimes, depending on the insurance company, they will go ahead and release the depreciation if you have a contract for repairs. This is rare.
Think of ACV (actual cash value) as the used value of your roof, for example. The RC or RV (replacement cost or replacement value) is what it cost to replace it.
The insurance company will usually pay the ACV and withhold the depreciation until the work is complete and cost of replacement is documented if you have RC/RV coverage.
They will not pay more than it costs, so the only way you pocket money is if someone is fudging the numbers, basically commiting insurance fraud.
Of course they take off for your deductible first thing.
Sometimes, depending on the insurance company, they will go ahead and release the depreciation if you have a contract for repairs. This is rare.
Think of ACV (actual cash value) as the used value of your roof, for example. The RC or RV (replacement cost or replacement value) is what it cost to replace it.
The insurance company will usually pay the ACV and withhold the depreciation until the work is complete and cost of replacement is documented if you have RC/RV coverage.
They will not pay more than it costs, so the only way you pocket money is if someone is fudging the numbers, basically commiting insurance fraud.
Of course they take off for your deductible first thing.
ACV (Actual Cash Value) = Replacement Cost minus depreciation
RC = Replacement Cost of like, kind, and quality
Going to second the notion that mr ed is incorrect in his assessment of claims. If a limb falls through your roof it is likely caused by wind or some other covered peril (homeowner's forms are pretty broad typically) then you are covered....generally... all the way to mold cleanup. Flood insurance has nothing to do with a claim like this, or pipes bursting.
RC = Replacement Cost of like, kind, and quality
Going to second the notion that mr ed is incorrect in his assessment of claims. If a limb falls through your roof it is likely caused by wind or some other covered peril (homeowner's forms are pretty broad typically) then you are covered....generally... all the way to mold cleanup. Flood insurance has nothing to do with a claim like this, or pipes bursting.
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Flood insurance is typically for rising water. Usually any water leak that occurs inside the home is covered, depending on policy. If a tree crashes into your home and then water gets in, it's usually covered. That's a flood but not from rising waters outside.
A Paddle. Never leave home without one. You never know when you'll find yourself up that creek.
Woody
Woody
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