is it now common practice for insurance companies to process claims for loss of personal property covered as "full replacement cost" as follows: check written to insured for depreciated value of damaged or destroyed item, insured purchases replacement item and provides insurance company with receipt, insurance company then refunds additional funds that were needed to purchase replacement above and beyond previously dispensed depreciated value.

example - tv destroyed, but covered by homeowner's insurance (and we'll say lots of other stuff destroyed too, so deductible issues are out of the picture). insurance company says depreciated value of tv is $300. cost to replace is $600. insured must pay extra $300 up front, provide receipts proving purchase to insurance company, wait for additional $300.

5/3/2010 1:34:58 PM

Can't speak to home owners, but I assume it is the same as auto. If you total your car, they arent going to go look up the Kelly Blue Book value. They will look at what cars are being listed for in your area, and give you a check for what the average car is selling for.

When my mom's avalon was totaled, KBB had it for around 17k, but the comps in the area were 19k, and we got that minus the deductable.

5/3/2010 1:54:35 PM