UNDERSTANDING INSURANCE TERMS
Insurance Guide
Helping you to understand common insurance terms seen in the roofing process.
RCV
Replacement Cost Value, or the initial insurance-estimated cost to replace your roof.
Recoverable Depreciation
The amount the value of your roof has decreased because it isn’t brand new.
ACV
Actual Cash Value. The RCV minus Recoverable Depreciation = ACV.
Deductible Or Copay
Subtracted from your claim. The deductible or copay will be paid out-of-pocket to your contractor
Example
$10,000 RCV
-$5,000 Recoverable Depreciation
______________________________________
$5,000 ACV
↓
$5,000 ACV
-$1,000 Deductible
_______________________________________
$4,000 Net Claim
Example
$4,000 Net Claim
+5,000 Recoverable Depreciation
+1,000 Supplements
______________________________________
$10,000 Total Payout from Insurance
after accounting for your Deductible…
$11,000 is the total owed to Mango Roofing
Completed Roof Project
When your roof is completed, you will be given:
Your Recoverable Depreciation
Supplements for Permit
Taxes & Code Requirements
Which makes the total payout from the insurance company to you $10,000. Or, $1,000 less than your bill from Premier to account for your deductible.
*Please note the numbers listed here are for example purposes and actual costs vary from project to project.
If a roofer provides an estimate that is more than the RCV, you will be required to pay the difference to your roofing contractor.
Example: If your RCV is $10,000, and your estimate is $12,000, you owe the roofing contractor $2,000 (the difference) + $1,000 (the deductible) = $3,000 total out of pocket.
If a roofer provides an estimate that is less than the RCV, your insurance company will only release enough money to cover the estimate.
Example: If your RCV is $8,000, and your estimate is $8,000, you only owe the roofing company your $1,000 deductible = $1,000 total out of pocket for a cheap roof.
WORKING WITH MANGO
When you sign our agreement, all you have to pay is your deductible, and you get the roof we discussed.
Example: If your RCV is $10,000, you only owe Mango Roofing your deductible = $1,000 total out of pocket for the full Mango Roofing System with the best available products and expert installation.
