Page 6 - Final Version MPRC COLLATERAL OPTION 4 (8.5 × 11 in) (4)_Neat
P. 6
Apples to Apples Comparison
Based on a Replacement Cost Value (RCV)
of
$1,000,000
How do the three options compare?
MPRC
PAs Uses actual repair costs as evidence to
and Lawyers support the true RCV of the amount of loss.
Insurance This means your property can be fully
Use inflated estimates to repaired in a timely fashion and with quality
Company compensate for their contingency workmanship.
fees. You risk not getting the full
The insurer applies policy
RCV because their estiamte is above POL - value = $1,000,000
exclusions to minimize the RCV
market value. Actual cost = $1,000,000
of your claim. Thus scope and
includes PM fees
costs will not reflect an accurate POL - value = $1,200,000
value of the amount of loss. Negotiated cost = $850,000
minus PA or lawyer fees RCV =
Budget value = $700,000
Xactimate cost = $500,000 $1,000,000
includes PM fees RCV =
$637,500
RCV =
$500,000
The insurance company only pays You only have $637,500 to repair
$500,000 to repair $1,000,000 in $1,000,000 in damages. Who is
damages. What SHORTCUTS were responsible for the SHORTFALL to
taken? complete the repairs?
