What is the difference between Recoverable Depreciation or RCV and Non-Recoverable Depreciation?
[A: Depreciation is the amount of money the insurance company retains on the repairs they agree you need. They keep this in case you decide not to complete your repairs, because if you don’t, they are only obligated to give you ACV. Remember that ACV plus the Depreciation equals RCV. You are only entitled to the depreciation if you complete your repairs and if you have RCV Coverage in your Policy. Some policies only pay ACV, which leaves the policy holder to pay the depreciation. Be very careful when purchasing insurance and be sure to examine your existing policies to see which you have.
