If there was a garage theft and the insurance policy states personal property replacement cost, does this mean the cost to buy new or used?

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If there was a garage theft and the insurance policy states personal property replacement cost, does this mean the cost to buy new or used?

It seems very confusing as far as was told I have a year to go buy the stuff that has taken years to accumulate then they will depreciate the value and reimburse us (after deductible of course). What if it was a tool used once and in perfect condition do we argue that for less depreciation? What if we would probably never use it again, do we still have to buy it or just take the loss?

Asked on February 12, 2013 under Insurance Law, Indiana

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Insuring personal property for replacement cost means that if the item is damaged or stolen, the insurance company will pay for a new one.  That is different from actual cost value replacement which takes in to account depreciation or the value at the time of the loss.  Arguably you paid a lot for the insurance you have.  Stand your ground.  Good luck.


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