Insurance estimate terminology
Understanding Repair Estimates
Common line items and terms you'll see on estimates.
Editorial status: draft — awaiting expert review. General information only.
Common terms
- Line item — a single task or material
- Unit price — cost per square foot, linear foot, etc.
- Overhead and profit — contractor business costs and margin
- Depreciation — reduction in value due to age or wear
- RCV and ACV — replacement cost value and actual cash value
Comparing estimates
Estimates can differ in scope, not just price. Compare line by line and ask about anything that appears on one estimate but not another.
Official resources
This guide is general educational information, not insurance, legal or financial advice. Your policy, insurer and state rules determine what applies to your situation.