By Eli Goins · FL DFS #P159790 · Reviewed: · 1 min read
Short answer: RCV holdback is the gap between the ACV payment you receive at settlement and the full Replacement Cost Value. The carrier holds this portion back until you complete repairs and document the cost. To release it, finish the documented scope, gather final invoices, and submit them with a certificate of completion. Mind the deadline.
Why carriers do this
It prevents a homeowner from being paid full RCV and then not repairing: leaving the home in a more hazardous state and potentially creating future-claim issues.
How to release the holdback
- Complete the documented scope of repairs
- Gather final invoices from contractors
- Submit the invoices and certificate of completion to the carrier
- Carrier issues the supplemental payment for the holdback amount
Time limits
Most policies give you a window (commonly 180 days to 2 years) to complete repairs and claim the holdback. Miss it and the carrier may retain the depreciation permanently.
When holdback is disputed
- Carrier claims scope was inflated and won't release full holdback
- Contractor final is higher than the Xactimate estimate
- Insured repaired at lower cost: does the insured keep the difference?