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Can your insurance company deny your claim and still dodge paying Replacement Cost Value (RCV)? Florida courts say no—learn what that means for your claim.

Can an Insurance Company Deny Your Claim and Still Avoid Paying RCV? Not in Florida.

In the wake of a hurricane, broken pipes, or storm-damaged roofs, Florida homeowners rely on one thing: their insurance policy. But what happens when the insurance company flat-out denies your claim—and you’re left scrambling to repair the damage out of pocket?

Here's the kicker: Even if your insurer wrongfully denies your claim, you may still be entitled to the full Replacement Cost Value (RCV) of the damage. This key protection cannot be stripped away just because your insurance company says “no” the first time.

Let’s explore how Florida courts are standing up for homeowners, and what it means for your property damage claim.

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🎯 What is Replacement Cost Value (RCV), and Why Should You Care?

Imagine your roof gets ripped apart by a summer storm in Orlando. You file an insurance claim expecting your policy’s Replacement Cost Coverage to kick in, which would pay the full cost of replacing the damaged portion of your roof with new materials—not just the depreciated value.

But your insurance carrier denies the claim.

So where does that leave you?

RCV is the promise that your damaged property will be restored to its original condition without you having to cover the depreciation. It’s especially important in Florida, where most homeowners face recurring weather threats and have high-dollar repairs from water, mold, and wind.

The concern is: Do you lose that RCV benefit if your insurer wrongly says your claim isn’t covered?

Thanks to a recent Florida court decision, the answer is solidly “No.”

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🏛️ Florida Court: You Can’t Deny a Claim and Escape RCV Responsibility

In the 2024 case Universal Property & Casualty Insurance Co. v. Rodriguez, the Sixth District Court of Appeal laid it out plainly: insurance companies can’t deny a claim and avoid their obligation to pay RCV once liability is established.

Let’s break that down.

When an insurance policy includes RCV coverage, the homeowner is entitled to collect not just the “actual cash value” (ACV)—which is the depreciated value—but the full RCV when repairs or replacement are completed.

Before this court ruling, some insurers tried to exploit claim denials by arguing that since the policyholder never got to the “repairs” stage (because their claim was denied), they weren’t entitled to full RCV. Sounds like a catch-22, right?

Florida’s courts saw through this tactic and shut it down. They reinforced what’s fair: Wrongful denial doesn’t erase policyholder rights.

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🌴 Let’s Talk Florida: Why This Matters Here More Than Anywhere

In most states, an RCV dispute matters—but in Florida, it’s mission critical.

Here’s why:

• Hurricane-prone region: Roof and structural damage are among the most common claim types.
• Water + humidity = mold: A small delay in repairs turns into tens of thousands in mold remediation.
• Older homes: With our salt air and aging infrastructure, depreciation hits hard.

Example:
Consider Maria, a homeowner in Naples. After Hurricane Idalia, her shingles were ripped off. She filed a claim, but the insurance company blamed “wear and tear” and denied it. Maria couldn’t afford to pay out-of-pocket, so the roof sat unrepaired—and leaks became mold.

Fortunately, after hiring a Public Adjuster in Florida and taking legal action, the court ruled in her favor. Because she had an RCV policy, she was owed the full cost to replace the roof—even though she hadn’t done the work yet, due to the wrongful denial.

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🔍 The Insurance Company’s Playbook—And How to Beat It

Unfortunately, we’ve seen these tactics play out too often:

1. Outright denial: The insurer says the damage isn’t covered at all.
2. Delayed payments: They drag their feet while damage worsens.
3. RCV “loophole” denial: They argue you didn’t repair the damage, so you’re only owed ACV.

That’s where a Florida Public Adjuster comes in. We know how to counter these arguments by:

• Documenting damage before repairs
• Negotiating with insurers using policy language
• Getting you the full amount you’re owed—including RCV

Every day, homeowners across Florida—from Pensacola to the Keys—win these battles with help from experienced claim professionals.

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🔄 What Does This Mean for You, the Homeowner?

If your insurance company denies your claim, do not assume the fight is over. Especially if your policy includes RCV.

Here’s what you should do:

1. Don’t start repairs out of pocket right away—especially hefty jobs like roofing or flooring.
2. Call a licensed Florida Public Adjuster to review your claim and policy.
3. Document everything—photos, video, and written notes can make or break your case.
4. Don’t accept lowball ACV offers if you have RCV benefits in your policy.
5. Get a damage estimate from an independent contractor, not just the insurance company’s adjuster.

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🔨 Real-World Scenario: Mold After a Small Leak

Let’s walk through another real example from right here on the Gulf Coast.

A family in Sarasota noticed a soft spot near their bathroom vanity. They filed a claim after discovering a plumbing leak had soaked the baseboards and drywall. The insurer quickly denied the claim, saying the leak had “been happening over time” and wasn’t sudden. So, no payout.

Since the family couldn’t afford the repairs themselves, moisture sat under the flooring. Within weeks, mold was spreading—and the whole bathroom had to be gutted.

With a Public Adjuster’s help, they reopened the claim. A court later found that the denial was wrongful, and the insurance company was on the hook for all covered damage, including the initial plumbing leak, mold remediation, AND full replacement costs.

End result? The insurer had to pay what they should’ve paid in the first place—with replacement cost included.

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🤝 You Don’t Have to Fight the Insurance Company Alone

Wrongful denials happen more than you think. But denial is not the end of your story.

If your home has been damaged—and your insurance company is giving you the runaround—know that Florida law is on your side in many cases. You have the right to not only challenge the denial, but to still claim full Replacement Cost Value if your policy allows for it.

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📞 Need Help with a Denied Claim or RCV Dispute?

Whether it’s hurricane damage, water intrusion, or mold—we’re here to help you fight back.

Our team of experienced Public Adjusters in Florida will review your claim for free, explain your next best steps, and help you recover your full coverage—including Replacement Cost.

Don’t let your insurance company deny, delay, or underpay your property damage claim.
👉 Call us today at (XXX) XXX-XXXX for a free, no-obligation claim consultation.

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🛠️ FAQs

1. What is the difference between ACV and RCV?

Actual Cash Value (ACV) is the depreciated value of your damaged property, while Replacement Cost Value (RCV) covers the cost of actually replacing the item with new materials. RCV is often higher and gives you more financial protection.

2. Can I still get RCV if the insurance company denied my claim?

Yes, if the denial was improper and you later win or settle the case, you can still be entitled to RCV—even if you haven’t completed the repairs.

3. How long do I have to file for RCV after a loss?

It depends on your specific policy terms, but most Florida policies give a specific window (often up to 3 years) to submit for replacement cost reimbursement after the loss. Always check with an adjuster.

4. What damages are commonly misclassified as “non-covered” in Florida?

Water damage from slow leaks, mold, and storm damage to roofs are frequently denied by insurers—often unjustly. We regularly help clients fight these denials.

5. Should I repair damage while waiting for claim approval?

Not without documenting it thoroughly first. If your claim is denied prematurely, having solid before-and-after photos and a professional damage estimate can greatly help your case.

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Reference: This article was inspired by a piece from Chip Merlin. You can read the original post here.