CSP Insurance Services Home Page
  • Home
  • Get A Quote
    • Annuities
    • Automobile
    • Business & CommercialImage of right arrow
      • Commercial Auto Insurance Quote
      • General Liability Quote Form
      • Business Owners (BOP) Quote Form
      • Builders Risk
      • Workers Compensation Quote
      • Employment Practices Liability Insurance
      • Technology Errors & Omissions Coverage
    • Condominium
    • Flood
    • HealthImage of right arrow
      • Health Insurance Quote
      • Disability Insurance Quote
      • Long Term Care Insurance Quote
    • HomeownersImage of right arrow
      • Homeowners Insurance Quote
      • Homeowner Flood Quote Form
    • Life
    • Motorcycle
    • Renters
    • Watercraft & Boat
  • Customer Service
    • AutomobileImage of right arrow
      • Request ID Card for Auto Policy
      • Add Vehicle to Existing Auto Policy
      • Remove Vehicle from Existing Auto Policy
      • Add Driver to Existing Auto Policy
      • Remove Driver from Existing Auto Policy
    • Business & CommercialImage of right arrow
      • Request ID Card for Commercial Auto Policy
      • Add Vehicle to Existing Commercial Auto Policy
      • Remove Vehicle from Existing Commercial Auto Policy
      • Add Driver to Existing Commercial Auto Policy
      • Remove Driver from Existing Commercial Auto Policy
      • Request General Liability Certificate of Insurance
  • Claims
    • Automobile
    • Business & Commercial
    • Homeowners
  • Blog
  • Make a Payment
  • Resources
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Calculators
    • Free Reports
    • Insurance Glossary
    • Frequently Asked Questions
    • News Center
  • About Us
    • About CSP Insurance Services
    • Location Map
    • Employee Directory
    • Privacy Policy
  • Contact
    • Contact Us
Alternate Content
Commercial Personal Life & Health Real Estate Get A Quote
Home > Blog > What Is the Depreciated Value of Your Personal Possessions
WEDNESDAY, APRIL 17, 2019

What Is the Depreciated Value of Your Personal Possessions

When filing a claim on your home insurance policy, you may need to determine the value of your assets. This value is not simple to determine in some situations. Most types of assets depreciate over time. Their values are much less now than when you bought those items a few years ago. In many cases,image of home interior this plays a role in how much your insurer provides on a claim. Here’s a closer look at what you can expect.

What Type of Coverage Do You Have?

Some types of home insurance include actual value coverage. Others offer replacement coverage. Most of the time, this applies to the assets with your home, such as your furniture, personal items, electronics, and other belongings.

In replacement coverage, the home insurance policy pays a set amount of money based on the cost to replace the item. In actual value coverage, the depreciated value is a component of the process. Your insurer uses the current value of the item to determine how much to provide to you.

Consider an Example

Let’s say you buy a new sofa for $1,000. You use it, love it, and get a few stains on it. It’s normal even if it remains in very good condition, for the value to fall. If you were to sell it to a neighbor, your neighbor may not pay that $1,000 for it. Rather, he or she may only give you $500 for it, if it is in good condition. That change in value is an example of depreciation. It happens to just about all types of assets you own.

Some items, such as collectibles and jewelry increase in value over time. Most other belongings do not. If you have cash value coverage, your home insurance policy may not provide you with enough money to buy a new item. It will only pay the value of the item at the time of the claim.

For example, if a fire occurs and you lose the sofa to it, your insurer would only pay you the value of that item based on its condition right before the fire. In this example, that would be $500. You cannot use that to buy a new couch of the same value as the old one.

Depreciated value is common in home insurance policies. If you hope to have replacement value, a higher level of protection, you can do so. Your insurer can work closely with you to provide more protection for your assets.

Also Read: 5 Tips for Creating a Home Inventory for Insurance Purposes

Posted 1:51 PM

Tags: home insurance, personal possessions
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2012

  • insurance(75)
  • south carolina(49)
  • florence(48)
  • auto insurance(15)
  • home insurance(12)
  • business insurance(11)
  • life insurance(10)
  • lawson walker(9)
  • homeowners(7)
  • commercial insurance(6)
  • general liability insurance(5)
  • commercial auto insurance(5)
  • business owners(4)
  • workers compensation insurance(4)
  • property insurance(4)
  • health insurance(4)
  • coverage(4)
  • boat insurance(4)
  • condo association(3)
  • sc(3)
  • saving money(2)
  • policy(2)
  • distracted driving(2)
  • flood insurance(2)
  • storm damage(2)
  • stay at home(2)
  • texting(2)
  • driving(2)
  • motorcycle insurance(2)
  • general liability(2)
  • car insurance(2)
  • texting and driving(2)
  • renters insurance(2)
  • cyber insurance(2)
  • affordable care act(2)
  • teen drivers(1)
  • consequences of drinking and driving(1)
  • epli(1)
  • workers(1)
  • term life insurance(1)
  • business income insurance(1)
  • media liability(1)
  • good health(1)
  • comprehensive coverage(1)
  • medical history(1)
  • driving mistakes(1)
  • coinsurance(1)
  • deductibles(1)
  • liability(1)
  • auto collisions(1)

View Mobile Version
CSP Insurance Services |
2420 Hoffmeyer Rd, Suite D | Florence, SC 29501
| Ph: 843-519-2557
Facebook Twitter LinkedIn Google+ Blog RSS Feed