The process you outlined is generally correct but has some nuances to be aware of. Here’s how it typically works:
1) Itemized List Submission – You submit a detailed list of lost/damaged items, including descriptions and estimated values. Proper formatting and documentation help avoid delays and disputes.
2) Insurance Review & Depreciation – The insurer applies depreciation to determine the Actual Cash Value (ACV) of the remaining items. Since they’ve already advanced $250K, they’ll assess the remainder and issue an additional ACV payment based on their valuation.
3) Initial ACV Payment – If the insurer depreciates the remaining $700K down to $400K ACV, they may issue a check for that amount, subject to policy terms and any outstanding deductibles.
4) Replacement & Recoverable Depreciation – As you replace items and submit receipts, the insurer reimburses the difference between ACV and full Replacement Cost Value (RCV)—but only for items you repurchase. Policies often have deadlines for submitting receipts.
5) Ongoing Submissions & Disputes – You can continue submitting new items as you recall them. If you disagree with depreciation or valuations, you may need to challenge them with supporting documentation.
This process can be time-consuming. Accurate documentation is key to avoiding disputes. Companies like Archer Inventory can assist with preparing contents claims and accurate valuations in a way that helps expedite settlement. For larger or more complex claims, or if you just would like to not spend 100’s of hours preparing claims and arguing with your insurance carrier, it is advisable to consult with a professional public adjuster. UP has resources for professional help in your area
https://uphelp.org/sponsor-location/california/
Let me know if you have any questions.
