Florida Public Adjusters – Non-recoverable Depreciation and How It Impacts Your Insurance Claims
We are rated the highest in the industry and the top Florida Public Adjusters! Learn more on how to deal with non-recoverable depreciation when going over your claim with your home insurance company. Do you own property in Florida? Have you recently filed a property insurance claim? If so, you are not alone. The combination of the weather and the general issues that constantly arise with property ownership make insurance claims in the state a frequent event.
Unfortunately, the insurance claims process is complex, and even those individuals who have carefully researched and purchased appropriate coverage are often taken by surprise when they file a claim and receive a response from their insurance company, especially when it comes to what they receive for their damaged goods. Not every individual has replacement cost coverage – policies differ.
If you file an insurance claim, you will likely be reimbursed for the actual cash value of your damaged goods. This is different from the item’s replacement cost – which is the amount it would take to purchase that item prior to its being damaged. Instead, to determine the actual cost value you would subtract the amount it has depreciated from its replacement costs.
Many insurance policies offer replacement cost coverage. If this is the case in your situation, you would be eligible to be reimbursed for the amount your possession has depreciated. Another term for this amount is recoverable depreciation.
That being said, in some cases not all depreciation is recoverable. In fact, insurance companies will deem some depreciation non-recoverable, meaning they will not reimburse you for it. Those individuals who have non-recoverable insurance policies should only expect to receive the actual cash value for their damaged items.
Assume you had a house fire, during which your gas oven, which was purchased five years ago for $1,000, was damaged beyond repair. The useful life of a gas oven is 15 years. Your oven would depreciate approximately 7% each year (actually 6.66 – determined by dividing 100 by its useful life which is 15). Therefore, your five-year-old oven today is worth approximately $667. If you have a policy that does not cover depreciation, you would only be reimbursed that amount, you cannot recover the deprecated amount of $333.
Unfortunately, once you have purchased your policy and submitted a claim, it can be challenging to recover unreimbursed depreciation. That said, you may have options depending upon the language in your insurance policy. In situations like this, a public adjuster can be of assistance. Reach out to the best Florida Public Adjusters and rest assured your claim will be dealt with in a quick and professional manner.
These professionals can carefully review your policy and leverage their experience in negotiation with the insurance company to maximize your settlement. Reimbursement deprecation can be incredibly costly to you. It is well worth your while to reach out to a qualified and experienced public adjuster for assistance with your claim.