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Darryl Martin (Darrylm)
Posted on Tuesday, May 08, 2001 - 4:39 pm:   

There is a current trend to pay RCV up front with some exceptions. The term holdback is misleading as nothing was actually being heldback. The payment was being made based upon the policy language that (paraphrase)ACV is paid until repairs are made. Therefore it was based on a two payment system.

The insured actually had an ACV policy with RCV benefits attainable if certain criteria was met. There have been court cases in some jurisdictions that have held that this system goes against the theory of indemnity and that it should make no difference whether or not an insured replaces an item, he should be compensated for his financial loss. This has not yet been universally held but seems to be the coming trend.

Hope this helps to muddy the water.

Vince Tabor
Posted on Sunday, May 06, 2001 - 12:33 am:   

State Farm used to declare:
No depreciation on repairs,unless a policy cap, holdbacks on all full replacements,which require proper depreciation.
Exception: tearoff/tearout which is usually deferred.
This was two years ago....things could change.
Tom Toll (Tom)
Posted on Saturday, April 28, 2001 - 9:51 am:   

Janice and I had a $10,000.00 + claim with State Farm being our carrier. I have been with them for 39 years. They paid us up to $7,500.00 RCV without the mortgagee on the check. Payments beyond the $7,500.00 contained the mortgagee. They are definetely changing their philosopy about claims payment, which, in my opinion, will be very beneficial to them and the policyholder. Their adjuster was knowledgeable and courteous, (independent from Texas). We were very pleased with the outcome
Bruce (Bholling55)
Posted on Saturday, April 28, 2001 - 12:44 am:   

I understand St. Farm will be paying full replacement cost without depreciation on claims in St Louis and on all new cats in the future. Does that mean the insured will be paid full replacement without any hold back? Will there be any holdback at all until the insured fully replaces the damage property?

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