RCV

Replacement Cost Value

Full cost to replace damaged items with new materials. This is what the job SHOULD cost.

ACV

Actual Cash Value

RCV minus depreciation. This is what insurance pays FIRST (the initial check).

Depreciation

Wear & Tear Deduction

The $ amount the carrier holds back until work is complete. The \"age penalty\" on old materials.

Deductible

Homeowner\'s Share

Amount the homeowner pays out of pocket before insurance kicks in. Typically $1,000\u2013$5,000+.

Supplement

Additional Scope

When we find MORE damage during the job that wasn\'t on the original estimate. We submit for additional payment.

O&P

Overhead & Profit

The 20% (10% + 10%) contractors add for managing the project. Carriers often push back on this.