How to recover depreciation value on homeowners insurance claims.
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Nov 9, 2012
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 Dublin, OH
Asked on 11/09/2012
How to recover depreciation value on homeowners insurance claims. we had a large leak in our kitchen this summer, which ended up flooding our basement. We received an estimate & they deducted the depreciated value of the carpet from the cash we received. We replaced the carpet, but now they won't give us the depreciation value back for it. why is that? the cost exceeded the carpet value, but the rest of the repairs did not because we changed the scope of what we wanted done(and we did a lot of the work ourselves). Why won't they return the rest of the money on the carpet since that is what was depreciated?
Answer given on November 10, 2012
If you had a homeowner loss and the insurance company depreciated a portion of the claim, the company will usually make an additional payment once the repairs have been completed.However, the insurance company wil also look at the entire claim. If you changed the scope of repairs, the insurance company will only pay for replacement in kind. Any upgrade is your responsibility. If you presented the final total amount of the repairs, including the replacement cost of the carpeting, then the insurance company will look at the total amount of the repairs. If they have already paid the value of the total, they will not pay any further amount. However, the adjuster should explain this to you. Talk to the adjuster and ask them to explain the final settlement amount and why they are not willing to make an adjustment for the carpeting.
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.