What Every Homeowner Should Know Before Filing a Property Damage Claim
If you’ve ever experienced water damage, fire, or another type of property loss, you know how quickly things can feel overwhelming. One of the most confusing parts of the recovery process is understanding what your insurance policy actually covers—and how much you’ll receive to repair the damage.
Terms like ACV, RCV, and maximum benefit coverage can seem vague or technical, but they have a big impact on how your restoration claim plays out. In this post, we’ll break down the differences in simple terms, explain how each affects your payout, and share tips to help you make more informed decisions before and after a disaster.
Let’s say a pipe bursts and floods your kitchen. You call a plumber, then a restoration company. You file a claim, expecting the damage to be covered. But your insurer only offers to pay a portion of the repair cost.
Why? It often comes down to the type of coverage you have.
That’s why understanding the basics of ACV, RCV, and maximum benefit policies can save you time, money, and stress—especially when you’re trying to put your home back together.
Actual Cash Value means your insurance provider will pay the depreciated value of the damaged property or materials.
You’ll be reimbursed for what your home items or building materials are worth today, not what it costs to replace them new.
If your 10-year-old wood floor is damaged, and it would cost $5,000 to replace it today—but its depreciated value is $2,000—you’ll receive $2,000, minus your deductible.
Replacement Cost Value coverage pays for the full cost to replace damaged materials with new ones of like kind and quality—without deducting for depreciation.
You get reimbursed for what it actually costs to rebuild or repair, not what the old materials were worth at the time of loss.
If that same wood floor would cost $5,000 to replace, your insurance would cover the full $5,000, minus your deductible—even if the floor was 10 years old.
Some RCV policies pay ACV first, and release the remainder after repairs are completed and documentation is submitted. This is why working with a restoration company experienced in insurance coordination is key.
Some policies—particularly those sold as budget or “basic” options—have a maximum benefit cap. This means the insurer sets a fixed dollar limit on what they will pay for any claim, regardless of the actual repair cost.
Once your claim hits the cap, you’re responsible for any remaining cost.
If your policy has a $10,000 limit on water damage coverage, and the total cost to restore your home is $18,000, your insurance only pays $10,000—you must cover the remaining $8,000 yourself.
As a homeowner, knowing your insurance type helps you ask the right questions and plan for your financial responsibility during the restoration process.
At Standard Restoration, we work with homeowners and insurance companies every day. We review your policy, document the damage, and communicate directly with adjusters to make sure nothing is overlooked.
Here’s how we help:
Understanding your insurance coverage isn’t just paperwork—it directly impacts how much help you’ll receive after a disaster.
If your home has experienced damage, Standard Restoration is here to guide you through every step. We work quickly, communicate clearly, and help you get the most out of your insurance coverage—whether it’s ACV, RCV, or capped benefits.
Contact Standard Restoration today for a free inspection and professional guidance on your property damage and insurance claim. We’ll help you understand what your policy covers—and make sure the restoration work meets your home’s full needs.