We are currently filling out our personal property inventory to submit to the insurance company. We would like to include pricing on many of our older items by using pricing from similar condition, used items being sold on ebay or other similar sites. This would be instead of using a new, replacement cost and then applying some form of depreciation. While some of our items destroyed are available new, many are not available new. Is this a reasonable approach that would be generally acceptable to an insurance company? For items that are readily available as new, we would list the replacement cost and depreciation. Therefore, our inventory pricing would consist of a mix of replacement cost and depreciation for some items and used prices based on ebay. Are there additional example inventory lists that illustrate different ways to apply depreciation? Please advise. Thank you.
Although entitled to pricing reflecting the Replacement Cost Value (RCV) for all destroyed possessions, capturing costs to purchase USED items on an Actual Cash Value (ACV) basis to replace those possessions lost, for which there would be no additional deprecation, is appropriate. A number of factors may be in play using this approach – and homeowners are left to determine how best to handle and support their claim to obtain policy benefits.
Please note it will be extremely important to accurately specify the entries/possessions for which you captured “used” pricing. It is also helpful to include a link to support the pricing used. Although a bit more work for you using this approach – it may be most convenient and less confusing to create for the carrier a spreadsheet listing possessions by room with supporting RCV pricing, links and depreciation – AND – a separate spreadsheet listing possessions by room with supporting links for USED possessions for which depreciation is already addressed. When submitting the inventories, include a narrative/explanation as to the approach taken requesting the carrier acknowledge and approve the e-mail and inventories. Make sure you add the RCV on 1st spreadsheet and the ACV on the 2nd spreadsheet to understand where you are compared to your available limit. We wish you well.