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?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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 11 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption