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Getting Everything That's Coming to You

  Actual Cash Value  

 Replacement Cost 

Most home owners’ policies have REPLACEMENT COST VALUE (RCV) coverage. This is the total cost (including tax) to replace any item that you are claiming on your total loss Personal Property inventory.  ACTUAL CASH VALUE (ACV) is the replacement cost of an item, minus its depreciation for age and condition. 

Nearly all of the items in your total loss Personal Property Inventory will be depreciated by your insurance company using their own depreciation schedule.  Your carrier will consider these items as used and won’t value them as new. Concordia Claims Managers uses the more favorable IRS tax tables to determine the depreciation of each item.  Depreciation is based upon age, useful life and condition of an item at the time of loss.  Your insurance company may choose to re-price your personal property to determine their RCV and ACV.  Concordia Claims Managers will compare their list with ours to ensure that their pricing is accurate.  After our audit we will begin the adjustment process with the carrier, arriving at a fair and equitable settlement.

Did you know that there is an mathematical formula for calculating your Actual Cash Value? Here it is:


Actual Cash Value =  P – (CA x      )

…where P is the original purchase price of the item, CA is the current age of the item in years, and EL is the item’s expected life in years.


In case you're not a math whiz, just let Concordia worry about the math for you!

When you replace a lost item you’ll likely be paying full retail price for it. The difference between the price you pay and your ACV is the amount that is due to you, up to the agreed RCV amount. For example; if the RCV of an item on your list is $100 and the ACV (the amount they paid to you) is $70 then you are entitled to the $30 difference, provided that your receipt shows that the amount you spent was at least $100.  If you spent less than the RCV but more than the ACV you are only entitled to the difference between them.  If you only spent $90 then you are only entitled to $20.

As you purchase replacement items, always get a receipt.  Most retailers detail their receipts with abbreviated descriptions or SKU numbers.  On your receipt, write the line number from your final insurance contents list next to the replacement item you purchased. This will greatly expedite the recovery time of your RCV/ACV difference. It requires many hours to match items on your receipts to your contents list if there isn’t a complete description of the item purchased. It takes only a moment to match the item to your list when the purchase is fresh in your memory.

When you engage the services of Concordia Claims Managers, we do most of the work for you! As you accumulate a batch of receipts, just place them in one of the self-addressed envelopes provided by your Concordia Sr. Claims Manager and mail them to us (and record the cost of the postage, too! You can claim that as a loss-related expense).  We will enter your receipts into a spreadsheet and send to it your carrier, along with copies of your original receipts.  The carrier’s adjuster will review the list to verify the pricing and will submit it for payment. That’s it! Your money is on its way in about ten days.

Concordia Claims Managers is the only local public adjusting firm that provides this service.  We pride ourselves in providing a complete package of services that will ensure our client’s recovery process is expedited and as worry-free as possible as you are restored to wholeness.  Remember, Concordia Claims Managers works for you… not the insurance company.  If at any time you get stuck, your Concordia Sr. Claims Manager is just a phone call away.



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