Why the first payment may be lower
On policies with recoverable depreciation, a carrier may initially pay an ACV amount and hold back eligible depreciation until policy conditions for replacement or repair are satisfied.
Direct answer
Replacement cost value (RCV) generally refers to the cost to replace damaged property with new property of like kind and quality, subject to the policy. Actual cash value (ACV) is a depreciated value. Ohio Rule 3901-1-54(I)(2)(a), for losses settled on an ACV basis under the rule, describes ACV as replacement cost at the time of loss, including sales tax, less depreciation.
RCV does not mean every cost is automatically covered
Coverage, deductibles, limits, exclusions, code coverage and policy conditions still control what the insurer pays.
ACV documentation in Ohio
Under Ohio Rule 3901-1-54(I)(2)(a), when the rule's ACV provision applies, the insured may request documentation detailing the depreciation deductions.
Contractor role
Demore can provide a repair/replacement estimate and completion documentation. We do not determine the carrier's coverage obligation.
Primary source
This page is educational and summarizes the cited Ohio source. Policy language and claim facts matter.
Ohio Administrative Code 3901-1-54Common questions
Is ACV the same as market value?
Not under the Ohio rule's stated ACV calculation for the covered property losses it addresses. The rule describes replacement cost at the time of loss, including sales tax, less depreciation.
Can I ask the carrier how it calculated depreciation?
Yes. Ohio Rule 3901-1-54(I)(2)(a) says the insurer shall provide documentation detailing depreciation deductions upon the insured's request when that provision applies.
What does Demore need from me?
The carrier estimate and scope are helpful. We can compare them with field measurements and the construction scope required for the project.
Need contractor documentation?
Demore can inspect the exterior, document conditions and prepare a construction estimate or repair scope.
General educational information only. Demore Exterior Solutions is a contractor, not a law firm, insurer or public adjuster.