What Is Recoverable Depreciation
Recoverable Depreciation is the gap between replacement cost and Actual Cash Value (ACV). You can recover this gap
by providing proof that shows the repair or replacement is complete or contracted.
How Do You Get Paid For Your Loss?
First, we’ll pay you the actual cash value (ACV
) for your damaged property, minus your deductible. You can use this to either begin the repair work or to replace your property altogether. Before receiving additional payments, you may need to show a signed contract that repairs have been completed or property has been replaced.
How Do You Collect Full Replacement Value?
Your policy may provide replacement cost
for your home and personal property. However, we don’t pay your replacement cost until you’ve repaired or replaced the damage.
As a result, you may receive more than one payment for your recoverable depreciation – this will be whatever the difference is between the ACV and the replacement cost.
Invoices or receipts help you receive your replacement cost payment.
How Does the Claim Payment Work?
ACV is the cost to repair or replace damaged property, minus depreciation. Depreciation is the loss of value over time and can be impacted by age, disuse and condition.
For example, if someone steals your TV and you have replacement cost coverage, your claim information may look something like this:
- Original cost - $900
- Cost to replace your TV today - $900
- ACV after depreciation - $750
This means our first payment to you would be:
$750 - your $500 deductible = $250
After you buy your new $900 TV and show us your receipt, we’d make a second payment to you of $150.
Are You Covered?
You should review your policy regularly to ensure you have enough coverage. If you have questions about your policy’s property coverage, we can help. Speak with one of our specialists at 888-413-8970