What Homeowners Should Understand Before Filing an Insurance Claim
Date postedNovember 14, 2025
Too many policyholders only learn what their coverage does after something goes wrong. By reviewing a few key features of your policy in advance, you can avoid delays, disputes, and unpleasant surprises during the claims process. The most important areas to understand are:
1) Policy Type — RCV vs. ACV vs. RPS
Not all policies pay out the same way:
- RCV (Replacement Cost Value): Pays the cost to repair or replace damaged property with new materials of like kind and quality, without deducting the depreciation.
- ACV (Actual Cash Value): Pays replacement cost minus depreciation. You receive less upfront and often significantly less overall.
- RPS (Roof Payment Schedule): Pays roof portion of the claim based on a pre-set schedule, rather than using RCV or ACV. Instead of calculating payout from the actual cost to replace the roof on the day of the loss, the carrier uses a predetermined table that reduces the payment as the roof ages.
Two homeowners can have the same damage yet receive drastically different payouts depending solely on the settlement basis. Knowing your policy type will make a major difference in what you can expect to collect.
2) Deductibles — By Claim Type
Homeowners policies increasingly apply separate deductibles based on the type of loss (e.g., wind/hail, hurricane, all other perils). These deductibles may be expressed as a flat dollar amount or a percentage of your dwelling coverage limit, which can translate to thousands — or tens of thousands — of dollars out of pocket.
Example: On a $500,000 home, a 2% hail deductible = $10,000.00 out-of-pocket before insurance pays anything.
3) Cosmetic Damage Exclusions or Endorsements
Some policies limit or exclude payment for cosmetic-only exterior damage — for example, dents in metal roofs or siding that do not impair performance. Other policies add an endorsement to buy back that coverage. It’s important to know in advance whether purely aesthetic damage is covered or excluded.
4) Matching Requirements for Undamaged Materials
Policies vary on whether insurers must pay to match undamaged roofing, siding, or windows when only part of the structure is affected. Without a matching endorsement, you may end up with visibly mismatched sections after repairs, even if replacement materials are not available in the same color or texture.
5) Ordinance or Law Coverage
When repairs trigger building code compliance or mandatory upgrades (e.g., decking, ventilation, electrical), insurers will not pay for those increased costs unless you have ordinance or law coverage. This coverage can be crucial, especially in older homes or jurisdictions with updated codes.
6) Claim Filing Deadline — Time From Date of Loss
Most policies include strict deadlines (often 1–2 years, sometimes less for wind/hail or catastrophe events) to file a claim. Missing that window can void coverage entirely, regardless of the validity of the loss.
7) Repair Completion Deadline — Time From Date of Loss
Even after a claim is filed, policies may require that repairs be completed within a set timeframe to receive full payment, or to collect recoverable depreciation under an RCV policy. Delays in scheduling contractors or supply chain issues do not always extend these deadlines.
Understanding these items before a loss occurs empowers homeowners to make informed decisions and avoid costly coverage gaps. A short review today can save months of frustration during a claim.