| You may not be aware, but depreciation plays a | | | | Sometimes, their guesses are correct but many |
| very large role in the calculation of a home insurance | | | | times, they are not. If you think that your home |
| claim. It is important for homeowners to be aware of | | | | insurance adjuster may be guessing at depreciation |
| who determines the calculations of depreciation and | | | | calculations when you file a claim, definitely do your |
| what method, exactly, is used in determining that | | | | homework. |
| rate of depreciation. With any home insurance policy, | | | | Before making a home insurance claim, it is best to |
| you should be aware of this information. | | | | have a full understanding of what type of coverage |
| The entity responsible for determining the | | | | you have. A standard home insurance plan will cover |
| depreciation is ultimately the insurance company. Your | | | | dwelling loss as well as contents (personal property) |
| insurance company will decide the amount of | | | | loss. It is very important to ensure that your home |
| depreciation and will subtract that amount from the | | | | insurance plan also has coverage for the value of the |
| cost of your property. The rate will stand as they | | | | contents of your home. If you do not have this |
| decide unless you challenge their calculations. Some | | | | coverage and experience a home loss, the insurance |
| homeowners do challenge their insurance companies | | | | adjuster will depreciate every item in your home. |
| when they make an insurance claim. | | | | Recoverable depreciation is also worth understanding |
| The way in which these rates are determined is | | | | if you are going to make a home insurance claim. This |
| through published depreciation tables. These tables list | | | | type of depreciation will determine what conditions |
| the useful life and depreciation of a wide variety of | | | | exist and how losses are settled. In most cases, the |
| properties. Such depreciation tables can be accessed | | | | home insurance company will pay you the actual |
| through your home insurance company or may even | | | | monetary value of the damaged or lost property until |
| be found online. More often than not, home insurance | | | | repair or replacements are completed. If depreciation |
| adjusters and their claims departments; also have | | | | is not calculated properly, you could stand to lose |
| computer software that has the insurance | | | | thousands. |
| depreciation tables factored in. Such software makes | | | | In order to successfully file a home insurance claim |
| figuring depreciation very easy and almost error free. | | | | and ensure that your depreciation is calculated |
| The insurance adjuster simply fills in the type of | | | | accurately you must be informed. You should always |
| property, its condition and its age and the software | | | | require that your insurance adjuster provide copies of |
| figures the depreciation automatically. | | | | the exact depreciation tables that they use. When |
| One very dangerous, but frequent way that | | | | your claim is filed, if you find that the tables and |
| depreciation is calculated is when the insurance | | | | actual estimate do not match, you can refuse the |
| adjuster makes a guess. Often, insurance adjusters | | | | claim and demand that the claim be re-estimated. |
| will make a guess based on their past experience. | | | | |