What is the percentage for permit fees based on the RCV?

The correct percentage for permit fees based on the Replacement Cost Value (RCV) is 0.5%. This figure is derived from standard practices within the insurance industry, where permit fees are typically calculated as a percentage of the total RCV of the insured property. Understanding this percentage is crucial for adjusters, as it directly impacts the overall claim amount and how policyholders can expect to see their costs accounted for during the claims process.

The lower fee of 0.5% reflects a common approach to help manage costs associated with permits, ensuring that it remains reasonable while still being sufficient to cover administrative processing and regulatory compliance associated with construction or repair activities.