Understanding the terminology of insurance policies is critical in understanding your legal rights under them.  An insurance policy that allows “RCV” or “Replacement Cost Value” typically means the cost to replace the damaged property with the same type, kind and quality without allowing for depreciation.  This is a general explanation only and the definition of RCV can vary depending on the specific language used in the policy.  Under many RCV policies, the claimant typically must execute repairs or replacement. “The plain import of this passage is that while [the claimant] may elect to recover on a replacement cost basis, it may only do so once it has repaired or replaced the lost or damaged property.” Devonshire Real Estate & Asset Mgmt., LP v. Am. Ins. Co., Case No. 3:12-cv-2199-B, 2014 WL 4796967, at *5 (N.D. Tex. Sept. 26, 2014). This condition makes sense as a prerequisite for RCV recovery because “the replacement of damaged property is an event that triggers coverage.” Fitzhugh 25 Partners, L.P. v. KILN Syndicate KLN 501, 261 S.W.3d 861, 864 (Tex. App.—Dallas 2008, pet. denied). “It is the act of replacing the property that causes the insured to suffer an additional loss for which [it] has purchased additional coverage [beyond ACV recovery].” Id. “To allow an insured to recover replacement costs in the absence of actual replacement would permit the insured to recover for a loss that [it] has not suffered.” Id.; Central Mut. Ins. Co. v. White Stone Props., Ltd., Case No. A-12-CA-275-SS, 2014 WL 1092121, at *6 (W.D. Tex. Mar. 19, 2014). 

If you have questions about your insurance policy, contact Josh Borsellino for a free, no-cost, no-obligation insurance claim review.  It is very likely there are steps you should be taking right now to protect your right to recover in full – Josh can advise you of your legal rights to protect yourself against an unscrupulous insurance company.

Josh has for years represented individuals against some of the largest companies in the country.  Josh is an insurance claim denial attorney, and he is actively seeking storm damage cases in Austin, San Antonio, Midland, Waco and San Angelo, and the surrounding areas.  If you have experienced unfair tactics by an insurance company after filing a storm damage claim, contact Josh at 817.908.9861 or email him here for a free and confidential consultation.