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ACV, RCV, and recoverable depreciation review checklist

A homeowner insurance payment checklist for identifying actual cash value and replacement cost treatment, deductible, nonrecoverable and recoverable depreciation, policy limits, endorsements, itemized withheld amounts, repair deadlines, proof-of-completion requirements, mortgage-servicer endorsement, staged contractor payments, supplements, invoices, and final depreciation requests without confusing claim proceeds with contract price.

6 items to check

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Policy form, coverage part, limits, endorsements, and settlement basis are identified

Critical item

ACV, RCV, special limits, ordinance coverage, matching, roof settlement, and other provisions may differ by item.

Gross replacement cost, ACV, depreciation, deductible, prior payments, and net check reconcile

Critical item

Each withheld or deducted amount should be traceable.

Recoverable and nonrecoverable depreciation are separated by item and condition

Critical item

The owner should know which amounts may be claimed after repair and which are permanently withheld under the policy.

Repair deadline, invoices, photographs, completion proof, and submission process are documented

Critical item

Recoverable depreciation and supplements usually require timely proof under policy and insurer procedures.

Check payees, lender endorsement, inspection, draw schedule, and homeowner access to funds are understood

Critical item

Mortgage agreements may require the servicer to release claim money in stages.

Claim payments, owner deductible, upgrades, supplements, contractor invoices, and remaining exposure are tracked separately

Insurance proceeds should not obscure the owner’s contractual obligations.

Use after the insurer issues an estimate or payment explanation and before committing all proceeds to a contractor. CFPB explains that claims may pay actual cash value or replacement cost and that mortgage servicers often control staged release of funds. Policy language and state rules control the exact process. Do not climb storm-damaged roofs, enter unstable or flooded structures, touch downed electrical conductors, operate fuel-powered generators indoors, or begin hazardous cleanup without qualified direction. Emergency safety and temporary weather protection come before detailed inspection.

Reference standards

  • The homeowner insurance policy and endorsements, insurer claim instructions, mortgage-servicer requirements, applicable state insurance and contractor rules, adopted building code and permit requirements, signed restoration contract, authorized change orders, and exact repair-system manufacturer instructions
  • CFPB homeowner insurance payment guidance and current state insurance-department consumer resources

    • Tools

  • Policy declarations and endorsements, claim number, adjuster scope, contractor estimate, photographs, permits, invoices, and communications log
  • Camera, weather-safe ground-level observations, inventory worksheet, moisture or restoration records, and independent professional reports where needed
  • Payment, mortgage-servicer draw, depreciation, supplement, lien-waiver, warranty, and closeout records

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