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When we replace our contents how does that work? I know we have to submit our receipts but I’m curious…. Example: Our tv was stolen, 5 years ago we bought it for $ 1000 today after depreciation it’s actual cash value is $ 800. But, we have replacement cost on contents. If the cost to get a tv as close to like kind as possible today is $ 1200 how much would we get after submitting our receipts? The $ 1000 or the $ 1200?
Sid, your friend had to have his deductible taken out of that amount and if he would have replaced his tv and submitted his receipt to the insurance company he could have recovered some of the depreciation value if he has replacement cost contents on his insurance policy. Also, adding things to your claim that you shouldn’t is dishonest and constitutes insurance fraud.

6 Thoughts on Homeowner’s Insurance Claim – My house was broken in to and we filed a claim and we received our settlement…?
  1. Reply
    December 30, 2011 at 12:42 pm

    you should always claim a lot more stolen goods even if it’s not true , cause they will only give you a fraction of what it’s worth. my friend got his tv stolen 3 weeks ago and paid 1500$ for the tv 6 months ago., and the insurance gave him a check for 430$ witch really sucks

  2. Reply
    December 30, 2011 at 1:39 pm

    If you have replacement cost coverage you should be paid the full amount of replacement for like kind items.

  3. Reply
    December 30, 2011 at 2:22 pm

    if you do indeed have true replacment coverage, there is no depreciation applied..

    its simply replace the piece as it was, and often today its cheaper than what you paid

    for it in electronics. you have to provide a specific and detailed precise listing of each

    item stolen…many ins companies allow you up to six months of discovery. if you have

    extraordinary value items, they more than likely will tell you prove it; and also you should’ve

    had a rider on those type pieces beyond your normal policy, giving them separate coverage/values

    thats where it gets sticky..if you claim a jewel piece of painting, then you have to present appraisal

    of the piece that establsihes that value/not just your word/doesnt work that way. simple items there’s

    usually no problem over/they get handled; get into the higher grade stuff, well then prove it if you’re

    claiming it.

  4. Reply
    December 30, 2011 at 2:48 pm

    You have 180 days from the date of the theft to submit your receipts to be paid for the deprecation.

    Here’s how it works:

    You purchased a computer 4 years ago. You paid $ 1000 for it. Today, a computer with similar features can be purchased for $ 300. (what was top of the line 4 years ago…is low to mid grade now).

    The computer has a replacement cost of $ 300. From that the insurance company would subtract deprecation – say, $ 125.00. They would then issue you a check for $ 180. The replacement cost less the deprecation. You purchase a new, top of the line computer for $ 1200.00 and submit your receipt. The insurance company will issue a check to you for $ 125.

    I also doubt that a TV that you purchased 5 years ago for $ 1000, has a replacement cost of $ 1200. As technology becomes obsolete and is replaced with newer technology, the cost goes down for the older technology – not up.

    Just because you purchased a top of the line tv 5 years ago…does not mean a replacement is a top of the line tv today. Odds are, the top of the line tv you bough 5 years ago…is a mid grade tv now and on it’s way to being obsolete.

    For example: when Plasma TVS first came out, the large ones were well over $ 2000. Now…plasma is going out…LED is in. The same plasma tv today can be replaced for less than $ 1000.

    If you owned a rear projection 52″ tv that you paid $ 2000. The replacement is NOT a 52″ LED. A 52″ LCD or Plasma would be more likely. And, they are hard to find, but you can still find rear projection TVS. They are less than $ 1000.

    Granted, I can’t speak to specifics in your case and can only use examples. But I’d take another look at your replacement cost expectation. It just does not sound right.

  5. Reply
    December 30, 2011 at 3:43 pm

    MSAD is correct, since in most cases if you were to replace any electronic or computer items, that were the same, would cost much less and would actually get more, since most will “update” with more hard drive, or have more features.

    When I had my house fire in 1995, we had to replace everything in our house. My advice is to go to a store and tell them what you are replacing and ask for a similar item if they have it. That is the key, since if you have a Dell computer, will want another Dell computer that is similar to the one stolen. The same goes for your TV etc.

    The policy will state with like/kind/quality on replacement.

    good luck

  6. Reply
    December 30, 2011 at 4:10 pm

    How it typically works, is that if you have replacement cost coverage, you only get paid “depreciated value” minus your deductible, until AFTER you’ve actually replaced the items with like kind and quality. I’d talk to the adjuster and get “approval” on the $ 1200 television. The original purchase price is NOT the same thing as “replacement cost”, and she should be recalculating the settlement based on the actual cost to REPLACE.

    So, $ 1200.

    You only get actual cash value, unless you actually REPLACE those items.

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