How to Read an Appraisal Award Letter
How to Read an Appraisal Award Letter
RCV amount of Loss
At some point, you may be looking at the appraisal process and wondering how to Read an
Appraisal Award Letter. This is the document that will be signed by the appraisers and
potentially an umpire, if your claim goes through the appraisal process.
These appraisal awards are confusing for some, so the following is a simple breakdown of
what your appraisal award is saying. Remember that the appraisal process was created for
the purpose of keeping the claim out of court. An experienced public adjuster is qualified to
represent you during the appraisal process.
Assuming you have RCV coverage on your policy.
Look at the left column where it says, RCV amount of loss. This information on the left
shows the appraisal award amount for RCV or “replacement cost value.” They are broken
down as coverages A, B, C, D, and ordinance & law. These amounts represent the amount
of money you will get IF your policy allows for the replacement cost value of your lost or
damaged property, AND you actually replaced the items AND spent up to the RCV amount
and provide invoices or proof of your RCV costs.
The easiest way to remember what RCV is, would be to ask yourself what it will cost to
“replace” your lost or damaged property in today’s real world marketplace.
In this case, if John Doe replaced his personal property and repaired his dwelling AND
spent up to the RCV, then he would get $59,295.22 for damaged dwelling under coverage
A, and $7,217.62 for lost or damaged personal property. Again, these amounts are
calculated based on RCV, or what it would cost to replace in today’s real world market-
place, and requires John Doe to actually spend up to the RCV amount to get this amount
from the insurance company.
So, what does ACV AMOUNT OF LOSS MEAN?
ACV Amount of Loss
Now look at the column on the right labeled ACV AMOUNT OF LOSS. These numbers are
less than the amounts seen on the RCV side. Why? This is because ACV represents the
“Actu