My contractor's insurance is trying settle for ACV (depreciated) rather than RCV. Aren't I entitled to RCV?

Question

Bathroom work resulted in water damage to my hardwood flooring throughout condo due to leaking pipes. Contractor admits full responsibility and their insurance company estimates damage at $10,500 (RCV) but they want to settle for $8400 by including depreciation (ACV). Estimate received by flooring company to repair is $10,200. If I accept insurance company settlement I will have to pay the additional out of pocket. Since this was the contractor's fault and it goes through their insurance, shouldn't I be entitled to full replacement settlement rather than accepting the depreciated selttlement? Since I have no blame in the matter, I believe I should not have to pay anything out of my pocket. I need to know if I can legally tell the insurance company to settle for the RCV.

Answer 1

I would start by telling the insurance company you don't want their money, just want your floors back to the condition prior to the event. You might suggest that you would accept new flooring that matched the depreciated condition. Also that it is up to them to make that happen. It doesn't matter whether they do it themselves, pay a contractor direct, or pay you the amount of a contractor's price.

It may be that the contractor's policy limits reimbursement only to depreciated value, in which case you will have to go after the contractor.

You might be gutsy and ask them also, for housing expense while the work is being done.

Depending on the laws in your state, the amount may be too large for small claims court. I would hold off on contacting an attorney until all other attempts have failed.

Answer 2

Its the contractor's insurance... let him deal with it. He can either go round and round with his insurance provider or pay the difference himself.

I own a warranty service contract business (Im retired now), but in order to make sure my customer was happy, and there were no bad feelings over a mistake I, or my crew, made, I would take care of it myself. Just good business to leave the homeowner with as little inconvenience as possible.

You can also talk to your own insurance company - they might actually be willing to go after the other insurance company themselves, hehehe. I'd talk to the contractor first tho, then check with my insurance agent, then a lawyer if necessary. By the time the lawyer is done, the insurance company will not only be paying the full amount, they will also be paying court costs, your lawyers cost, and "stress" value for your inconvenience.

Have Fun

Answer 3

Tell the insurance co. you'll sue em in small claims court for the diff. if they dont pay you for full replacement cost. They are weasels anyway. Or you could sue the DDD plumbing contractor for the diff as well.

Answer 4

RCV represents the cost to purchase the article (or like sort and high quality) new. ACV represents its cutting-edge fee as a used (by ability of you) merchandise. It actually ability new fee minus depreciation in keeping with age. Older used products are nicely worth decrease than kind new. The replace value provision of the belongings vendors contents coverage facilitates you to get carry of the RCV of destroyed products IF and once you actual replace them (as much as the coverage decrease). till you do, you get carry of the ACV of the products. as an occasion, say you had a television destroyed that grew to become into 3 years previous, yet would value $1000.00 to replace. on account that electronics tend to be depreciated at 10% according to 3 hundred and sixty 5 days (this varies), the ACV you will get carry of on that merchandise would be $seven-hundred. once you supply a receipt exhibiting it grew to become into replaced, you will get carry of as much as $3 hundred added. if to procure a inexpensive television, you will get carry of much less, yet once you upgraded to a greater high priced television, you does no longer get carry of greater- you would be predicted to conceal the upgraded value. maximum rules require replacements be made interior a hundred and eighty days of the loss. Your adjuster ought to have defined all of this to you greater of course.