Can an insurer depreciate personal property on a claim?

by hstrand46 » Wed Jan 28, 2009 07:38 pm

Our newspaper carrier ran into our garage, damaging our garage door, the door frame and exterior brick and trim. The insurance company claims that they will not pay the full cost of replacing the garage door because of depreciation and that they aren't obligated to guarantee that the repaired brickwork will match the existing brickwork. Is this true? I can't believe that we should have to pay part of the cost for a new garage door as well as to pay to replace all of our other brickwork to guarantee that it all matches. We are retired and plan to sell our home soon and we will probably have to reduce our selling price if we have obvious brick repairs.

Total Comments: 4

Posted: Thu Jan 29, 2009 12:01 am Post Subject:

What is owed on the claim is Actual Cash Value... that is, the cost of what you had, not what it cost to replace it. I'm guessing they are paying for the value of the garage door and not repairs. Yes, depreciation would apply as garage doors don't last forever and need to be replaced. If they replaced the door, you would not need to replace it for another (I'm guessing) 30 years instead of 10 years or so. Depreciation sucks, yes.

No they don't owe to match the bricks... I'm not sure how this would be done anyway. But most carriers will work with you on this to try to do as much as they can. There was a recent discussion on siding that is much like your situation. Some carriers might replace a little bit more if it goes to a corner or a break in the wall, such as a door or window. This helps minimize the different look. Over a short period of time the new brick should fade and more closely match the old brick.

Posted: Thu Jan 29, 2009 03:15 am Post Subject:

hstrand, Have faith. The brick really will blend and look the same in time. We replaced some old brick on our first home and I will say it did weather and blend with the other brick. Hope this helps you feel better.
As for the garage door, if your planning on selling the home and the door was not new before this, it may actually add to the value of the home or make someone more intersted.

Posted: Thu Jan 29, 2009 08:56 am Post Subject:

Well, if you have the actual cash value policy the insurer would certainly pay the depreciated value of the door. As Tope has mentioned above the value of garage door do depreciate with time and use.

Regarding replacement of the bricks, the insurer would only pay for the material of same kind and quality. However, they may try to match it as close as possible but definitely won't construct the entire garage just to match the color of the bricks.

Thanks,
Rupert

Posted: Thu Jan 29, 2009 09:02 am Post Subject:

Here is the link to the discussion that tcope was referring to

http://www.ampminsure.org/home/hail-damage-claim.html

Hope you would get some idea from it. If you agree to share the cost to reconstruct a greater part of the garage the carrier may agree to pay for a portion greater than the original damaged part. Well, at least, you can negotiate the matter with the adjuster.

Thanks,
Rupert

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