Guides / Insurance

• ACV vs. RCV: What Your Restoration Payout Actually Covers

  Actual cash value (ACV) pays the cost to repair or replace damaged property based on its value at the time of loss, after subtracting depreciation for age and wear. Replacement cost value (RCV) pays the cost to repair or replace with materials of like kind and quality, without deducting depreciation, according to the National Association of Insurance Commissioners (NAIC).

• Why Insurers Deny Water Damage Claims

  The most common reason a water damage claim is denied or excluded is the cause of loss: standard homeowners policies generally exclude flood damage and water that backs up through a sewer or drain, according to Michigan's Department of Insurance and Financial Services, unless you purchased a specific endorsement for that coverage.

• What Documentation You Need for a Restoration Insurance Claim

  You need photos and video of the damage taken before any cleanup or debris removal, a written list of what was damaged or lost, your policy number, and receipts for every cleanup-related expense, according to guidance from the National Association of Insurance Commissioners (NAIC).

• Does Homeowners Insurance Cover Mold?

  Coverage for mold depends almost entirely on what caused the moisture that led to it. Mold resulting from a sudden, covered event, like a burst pipe, is more likely to be covered as part of that claim, while mold from long-term humidity, a slow undetected leak, or flooding is typically excluded under a standard Michigan homeowners policy.

• How to Read Your Policy's Water-Damage Exclusions

  Look for three specific terms in your policy's exclusions section: flood, water backup (sewer or drain), and surface water or groundwater. These are the categories Michigan's Department of Insurance and Financial Services identifies as generally excluded from a standard homeowners policy unless you've added a specific endorsement.