Depreciation: an accounting method used to allocate the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset’s value has been used.

Deductible: A deductible is an amount of money that you yourself are responsible for paying toward an insured loss. When a disaster strikes your home or you have a car accident, the amount of the deductible is subtracted, or “deducted,” from your claim payment.

ACV (Actual Cash Value):  The amount of your insurance claim minus the depreciation and deductible that the customer will receive whether or not they complete the repairs. 

RCV (Recoverable Cash Value):  The maximum amount you will receive if your Depreciation is recoverable and all repairs are completed. 

Non Recoverable Depreciation:  This is when a customer has an ACV (Actual Cash Value)Policy

Insurance Scope/Estimate/Adjusters Report:  Terms used interchangeably for the document that outlines the repairs that are being covered under the loss. 

Adjuster:  Works for the insurance company and reviews losses and determines the coverage for those losses. 

Agent: Individual who sells insurance policies. 

ACV Policy:  A policy under which the depreciation is not recoverable (will not be paid)

Code Upgrade Insurance: Insurance that allows for changes to be made per code that are not direct losses from the coverable event. 

Loss/Coverable Event:  Sudden and Accidental damage to home or property. 

Insurance Policy: The document that outlines the customers coverage provided by their insurance. 

Matching Coverage:  Additional coverage on some policies that require insurance to cover areas that were not damaged in an effort to keep the exterior of the home uniform. 

Not a matching state: Insurance carriers in Michigan are not required to “match” or have uniformity if the areas are outside of line of sight or distinctly separate.