2 Thoughts on when filing a home insurance claim do you have to purchase?
  1. Reply
    June 23, 2011 at 4:10 am

    The policy will owe you for similar items up to a certain amount per item. For example if you have a 27″ TV that you paid $ 200 for 6 yrs ago. The policy will pay for a similar 27″ TV at todays prices. (Replacement Cost) Let’s say $ 300. Most policies will pay the ACV (actual cash value) of an item up front. Then they will allow you 6 months to 1 year to show receipts that you replaced the item then you can collect the balance.

    If the company paid you up front an ACV of $ 150.00 on the TV but you went out and bought a flat screen for $ 1500, the company will still pay only the difference between the Replacement Cost $ 300 and the Actual Cash Value of $ 150.00.

    So you can buy whatever you want but you will only be PAID for the comparable value of the stolen or damaged item.

    Sorry for such a long answer.

  2. Reply
    June 23, 2011 at 4:33 am

    Depending on the size of the loss, you only get paid “actual cash value” until you actually replace the item. Most of the time, you can get “like kind and quality” or an upgrade, and still get the replacement value of the lost item.

    This is something you definately have to talk to the adjuster about in advance, though.

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