• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Home Burglarized, any tips for dealing with homeowners insurance

Status
Not open for further replies.
S

sciencewhiz

Diamond Member
This weekend, my parent's home was burglarized (in broad daylight). They got the TV and Wii, but left all the other home theater stuff. They took 2 laptops, but didn't take any of the other laptops or desktops. They took the digital camera, GPS, and Palm cell phone.

As most of the items were gifts that I had given them, they asked for help tracking down the serial numbers to give to the police, and the values to give to the insurance company.

They reported it to the insurance company right away, but since it was a weekend, they haven't talked to the adjuster yet. I read through the policy and we're supposed to provide descriptions of the items as well as the "actual cash value" (which includes depreciation) and the replacement value (the cost to replace it). Since the insurance adjuster isn't exactly a neutral party, I'd appreciate any advice people have.

How do you figure depreciation on electronics items that depreciate so quickly (for the "actual cash value").

Everything I buy is on sale, so in many cases, my receipts don't show the normal price of the item, is that going to hurt?

The TV was bought 2.5 years ago, and at the time was the only model that had specific features. Now those are common in mid-range TVs. I assume the replacement cost would be for the mid-range TV, and not a top of the line TV?

One of the laptops was less then a month old, however they weren't happy with it. They want to get a more expensive one to replace it. I assume they should be able to do that, and just swallow the difference.

The phone is interesting because without a new contract it would be $400, However it was bought with a contract for much less several years ago, and was replaced by the cell phone insurance a while back with a newer model.

Thanks for any tips.
 
I don't believe you have to prove you had the items or their worth.
My agent told me to video tape everyting and keep it in a safe place. I asked him if that was for assigning value later on. He said it wasn't but it was to remind me of what I had that was stolen. He said a lot of people miss things that they didn't think about when filing the claim.
This was with AAA.
 
Originally posted by: sciencewhiz
This weekend, my parent's home was burglarized (in broad daylight). They got the TV and Wii, but left all the other home theater stuff. They took 2 laptops, but didn't take any of the other laptops or desktops. They took the digital camera, GPS, and Palm cell phone.

As most of the items were gifts that I had given them, they asked for help tracking down the serial numbers to give to the police, and the values to give to the insurance company.

They reported it to the insurance company right away, but since it was a weekend, they haven't talked to the adjuster yet. I read through the policy and we're supposed to provide descriptions of the items as well as the "actual cash value" (which includes depreciation) and the replacement value (the cost to replace it). Since the insurance adjuster isn't exactly a neutral party, I'd appreciate any advice people have.

How do you figure depreciation on electronics items that depreciate so quickly (for the "actual cash value").

Everything I buy is on sale, so in many cases, my receipts don't show the normal price of the item, is that going to hurt?

The TV was bought 2.5 years ago, and at the time was the only model that had specific features. Now those are common in mid-range TVs. I assume the replacement cost would be for the mid-range TV, and not a top of the line TV?

One of the laptops was less then a month old, however they weren't happy with it. They want to get a more expensive one to replace it. I assume they should be able to do that, and just swallow the difference.

The phone is interesting because without a new contract it would be $400, However it was bought with a contract for much less several years ago, and was replaced by the cell phone insurance a while back with a newer model.

Thanks for any tips.
Click to expand...

First, read your policy jacket and find out if you have ACV or replacement cost. If you have replacement cost, start looking for comparable stuff (original price and/or spec wise).

They find depriciation by using sites like froogle (sp?).

If your honest with the company and say you bought it on sale, then expect to get what you paid and not the non-sale price (at the time of the sale).

To replace the tv with ACV, you would get whatever it's worth now. To replace with replacement cost, you would get whatever it was when purchased. So, if 2.5 years ago you bought the equivelent of the Pioneer Kuro Elite, then today you *should* get the Pioneer Kuro Elite (well whatever the price of it is).

With the laptop, the insurance will give you what was paid for the laptop (minus depriciation if you have ACV). What you do with that money is your choice, and if they want a better laptop then they have to swallow the cost.

Cell phones I don't know exactly how that will work (I'm an underwriter not an adjuster). My guess is they will replace what you paid, not the cost of the phone (the original phone). Depending on the company they might replace the newer model, but this will vary based on your company.

If you have any questions feel free to PM me, I work for one of the top 5 P&C (prop and cas) in underwriting. I used to work in claims though, and have friends who work as adjusters.

edit: Also listen to Sactoking's advice.
 
Originally posted by: oldsmoboat
I don't believe you have to prove you had the items or their worth.
My agent told me to video tape everyting and keep it in a safe place. I asked him if that was for assigning value later on. He said it wasn't but it was to remind me of what I had that was stolen. He said a lot of people miss things that they didn't think about when filing the claim.
This was with AAA.
Click to expand...

This is an accurate statement. If you have serial #'s, receipts, pictures/videos, other documentation of everything then 1: you won't forget something, and 2: you can prove you did own said item.

OP, write an itemized list for everything stolen that has:
Item name/model
Serial # if possible
Original cost (what you paid)
Date purchased
Any identifing parts of it (customizations and such, but with electronics this is unlikely)

I wouldn't suggest giving that to your agent, but having that for your records would be a good idea.
 
Originally posted by: sciencewhiz
I read through the policy and we're supposed to provide descriptions of the items as well as the "actual cash value" (which includes depreciation) and the replacement value (the cost to replace it). Since the insurance adjuster isn't exactly a neutral party, I'd appreciate any advice people have.
Click to expand...

First piece of advice: get a new policy with replacement-cost coverage instead of ACV coverage. Only a bit more expensive for much better coverage.

How do you figure depreciation on electronics items that depreciate so quickly (for the "actual cash value").
Click to expand...

Barring a definitive statement in your policy or from your DOI, I'd recommend using GAAP straight-line depreciation. You want to keep as much non-depreciated value in your belongings as possible, since that's what you'll be paid. Here's what you do:

For each item, make a reasonable assessment of the length of time it will be usable. Fr example, you might anticipate a laptop to be used for 10 years. Divide the purchase price by the usable life. This is the annual straight-line depreciation value. For each FULL year you owned the laptop, subtract the depreciation value from the purchase price. In the year you bought the laptop, subtract a full year if bought between Jan-Jun and a half year if bought Jun-Dec. Subtract a half year for 2009 as well. The remaining value is the Actual Cash Value of the good.

For example, let's say you bought a $700 laptop in March 2005. It was expected to last 10 years. The straight-line depreciation is $70/year. You owned the laptop for all of 2006, 2007, and 2008. That's $210 worth of use, so the value is now $490. By a half-year convention, you also owned the laptop for all of 2005 and HALF of 2009, so the true ACV is $385.

Everything I buy is on sale, so in many cases, my receipts don't show the normal price of the item, is that going to hurt?
Click to expand...

It means the basis for computing your ACV is lower. You start at a lower point, but lose less in depreciation each year. In all, you're a bit behind this way by buying on sale, but not much.

The TV was bought 2.5 years ago, and at the time was the only model that had specific features. Now those are common in mid-range TVs. I assume the replacement cost would be for the mid-range TV, and not a top of the line TV?
Click to expand...

Replacement cost doesn't matter, you already said the policy is ACV.

One of the laptops was less then a month old, however they weren't happy with it. They want to get a more expensive one to replace it. I assume they should be able to do that, and just swallow the difference.
Click to expand...

They should get full value for the laptop, so they can pay the difference to upgrade.

The phone is interesting because without a new contract it would be $400, However it was bought with a contract for much less several years ago, and was replaced by the cell phone insurance a while back with a newer model.

Thanks for any tips.
Click to expand...

You may be able to negotiate here, since you used a 'not-widely-available' discount, but I wouldn't count on it.

 
The policy is replacement cost, but it says to list both the ACV and replacement cost on the claim form. They're thinking about not replacing the Wii or the GPS, and in that case the policy says they will get ACV. I didn't see anything in the policy about the method of depreciation.

So for replacement cost, if I spent $1500 for the TV, I can buy a $1500 TV now, and not the $1000 TV that has the same features, or the $600 that I see for the same TV on froogle. On the same line, I have a $100 coupon at Best Buy right now, does that mean I can buy a $1600 TV and pay $1500?

Thanks for all your help.
 
"Replacement Cost" means that you should get enough to buy a "like-kind" product. If the TV you bought 5 years ago for $1500 can be had now for $800, you get $800. Any more than that and you are in a better position than you started, known as a "betterment" position.

Replacement Cost is calculated on listed price. If you have a $100 BB coupon, you CAN get $800 under the policy and pay $700 for the TV. Heck, since you're being cashed out (paid) you could not replace anything and pocket all of it.
 
My parents have State Farm. They lost a lot of items when their sump pump failed during a storm. The simply gave the insurance a list of lost items and their estimated value and received a check a few weeks later. They also received a seperate check for the water damage to the basement itself.
 
Originally posted by: sactoking
"Replacement Cost" means that you should get enough to buy a "like-kind" product. If the TV you bought 5 years ago for $1500 can be had now for $800, you get $800. Any more than that and you are in a better position than you started, known as a "betterment" position.

Replacement Cost is calculated on listed price. If you have a $100 BB coupon, you CAN get $800 under the policy and pay $700 for the TV. Heck, since you're being cashed out (paid) you could not replace anything and pocket all of it.
Click to expand...


fwiw, my experience is they will not pay you replacement value unless you purchase a new item...they wont just send you a check.
 
Status
Not open for further replies.

TRENDING THREADS

Back
Top