what I need to prepare if I want to do recoverable depreciation with my homesite insurance policy?

UPDATED: Jun 12, 2018

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Asked June 12, 2018

1 Answer

I need to first explain to you what recoverable depreciation is. Depreciation means a loss in a value. That is the simplest explanation I can give you right now. You might want to file a claim with your home owner's insurance policy for damage that has been done. The loss you have suffered will come mailed to you in the form of a check. You are going to be getting a check for the ACV, which means Actual Cash Value. That is what the items you lost are worth at the time of damage.

Now, there is a difference between recoverable depreciation and non-recoverable depreciation. The former refers to the items that can be covered, under the insurance policy that has been affected. The latter refers to the items that cannot be recovered, at the time of the accident or disaster.

What Do You Need?

The first thing you need is to replace and repair every item you can. Do you still have your original receipts for the items? You should have held onto them because you are going to need them. You need to make a list of every item lost. That list is separate from the receipts you have. You need to file the receipts for the items you have repaired and replaced. You need to file them with the original receipts.

Then, you submit everything you have to your home insurance company. Your homeowner's insurance company goes over everything. They will send you a check as soon as they are done. It might take a while, so be patient. Now, you need to keep in mind something about the item you replace. You may have bought a less-expensive duplicate of the original item. Your payment is based on the least expensive item and not what you originally paid.

Answered June 13, 2018 by SaulGood

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