Do I need to replace stolen items in my claim with exact, comparable, or similar items to receive recoverable depreciation value?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Jan 12, 2017
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Belmont Shore, CA
Asked on 01/12/2017
Do I need to replace stolen items in my claim with exact, comparable, or similar items to receive recoverable depreciation value? In repayment of my stolen items for my renter's insurance, I have received payment for the ACV of the items I listed. There is however a hold-back of recoverable depreciation on each item I am entitled to as I replace the items. To receive the depreciated value of each item, do I need to spend at least the amount listed as the depreciated value of each item? Example: on of my items is listed with a replacement cost of 119.89, depreciated at 36.67% to get a value of 43.96. I was given the ACV remainder of 75.93 in cash. To get the depreciated value, do I need to spend 119 on a replacement item?
Answer given on January 17, 2017
If your insurance policy requires you to replace lost or stolen items before it will pay the full replacement cost you need to replace with similar or comparable if not exact. If you replace with similar and the cost is less than the exact item, you will only be reimbursed the difference between what you had already received and the replacement cost. If the replacement item is less than what you have already received, the insurance company will probably just let it go. You can just not provide the cost of the replacement item. If you want to buy a lower cost item, but it exceeds the amount you have already been paid you will get the difference.You should review your insurance policy to see what it says. If you are not certain, call your agent or the insurance adjuster and ask. They should be willing to explain how the policy works.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.