Hi. My question is about ACV reimbursement. Let’s say I have a $10,000 patio door that was destroyed in a hail storm.

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Oct 12, 2012

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Insurance Question from Parker, CO

Asked on 10/12/2012

Hi. My question is about ACV reimbursement. Let’s say I have a $10,000 patio door that was destroyed in a hail storm. The insurance company has agreed to replace the door and they send me a check for $9000 ACV. What if I replace the door and it costs only $6000? Must I give the remainder of the ACV back to the insurance company? Thanks so much for your input.

Answer given on October 22, 2012

A homeowner policy is intended to repair or replace any damaged property to your home, less the deductible. The company will often pay you under an actual cash value basis until the damages are completed. They will then make any additional payment needed to complete your reimbursement. The repair costs include the actual parts needed to make repairs as well as the labor costs to remove and reinstall the damaged property.If you received a payment that exceeded the costs of repair, you will be expected to refund the over payment to the insurance company. The adjuster will most likely contact you about the final repair costs. If you provide them with a bill that is less than the amount you received, they will most likely ask you for the refund.You can contact the adjuster and advise them the repairs are complete. Ask if they need anything to close the claim, or simply wait for the adjuster to oontact you about the settlement. If they do not, they may simply send a letter confirming the claim is closed. You should tell them of the overpayment, but if they don’t follow up, that is their error.

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