How do Insurance Adjusters figure out how much to pay on a claim?
The value of your damaged personal property items (contents) should be the replacement cost of the item (or closest similar equivalent) less depreciation based upon age, wear, etc. The ending value is known as “actual cash” or depreciated value. This is what is paid at the time of the loss, less deductible. If the items are actually replaced the policy will then generally reimburse up to, but not more than, that replacement cost. Recommendations: (1) The adjusters get a lot of files. Ideally YOU should put down the value of the items. You can use receipts, catalogs, the internet (Amazon.com) and so on to value the items at replacement cost. Please be accurate as to age. Adjusters use standard depreciation charts to evaluate items generally. (Example; electronics usually are depreciated on a 10 year life). You may be asked for receipts for higher value items. Also, some items may be able to be restored if you act quickly (and you are required to try to prevent further damage. Called “mi
