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Replacement cost and depriciation

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smokinleroy

Junior Member
What is the name of your state (only U.S. law)? TX

A wind storm destroyed our 115-year-old stained glass window last August. We have State Farm replacement cost insurance. We got an estimate to put the window back like it was for $15,000. The adjuster reviewed the estimate with the glass shop and agrees with the amount. However, since it us so old, they say they will depriciate it by 50%, meaning we get will get ~$7,500 minus the ~$2,500 deductable now, or a check for ~$5,000. We apparently can fix the window, or keep the $5,000. They will pay the other $7,500 to the glass shop after getting the final $15,000 invoice and the repairs are complete and inspected. My wife insists that we are entitled to the entire $12,500 cash, whether we fix the window or not. What are the rules in this case?
 
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Banned_Princess

Senior Member
What is the name of your state (only U.S. law)? TX

A wind storm destroyed our 115-year-old stained glass window last August. We have State Farm replacement cost insurance. We got an estimate to put the window back like it was for $15,000. The adjuster reviewed the estimate with the glass shop and agrees with the amount. However, since it us so old, they say they will depriciate it by 50%, meaning we get will get ~$7,500 minus the ~$2,500 deductable now, or a check for ~$5,000. We apparently can fix the window, or keep the $5,000. They will pay the other $7,500 to the glass shop after getting the final $15,000 invoice and the repairs are complete and inspected. My wife insists that we are entitled to the entire $12,500 cash, whether we fix the window or not. What are the rules in this case?
The full replacement coverage only applies if you in fact replace the item. Thats the rule, thats it.

Your wife is wrong, have her read over the policy.
 

smokinleroy

Junior Member
What does the policy say?
"We will pay only the actual cash value of the damaged building structure(s) until repair or replacement is completed. (time limits). Upon completion of repairs or replacement, we will pay the additional amount claimed under replacement cost coverage, but the payment will not exceed the smallest of the following:
(1) the limit of liability...
(2) the cost to repair or replace that part of the building structure(s) damaged, with material of like kind and quality and for the same use and occupancy on the same premises: or
(3) the amount actually and necessarily spent to repair or replace the damaged building structure(s)."
 

Banned_Princess

Senior Member
"We will pay only the actual cash value of the damaged building structure(s) until repair or replacement is completed. (time limits). Upon completion of repairs or replacement, we will pay the additional amount claimed under replacement cost coverage, but the payment will not exceed the smallest of the following:
(1) the limit of liability...
(2) the cost to repair or replace that part of the building structure(s) damaged, with material of like kind and quality and for the same use and occupancy on the same premises: or
(3) the amount actually and necessarily spent to repair or replace the damaged building structure(s)."
OK sir, what did you get out of looking that up and reading it, and then typing it up, then presumably reading it again.

The coverage is REPLACEMENT COVERAGE. I don't know how they could have called it by any more of a more self explanatory title.
 

smokinleroy

Junior Member
OK sir, what did you get out of looking that up and reading it, and then typing it up, then presumably reading it again.

The coverage is REPLACEMENT COVERAGE. I don't know how they could have called it by any more of a more self explanatory title.
I just typed what the policy said because someone asked for it. I understand how it works. I just wanted a statement from an expert to show my wife to settle this argument. I showed her the policy and now she is trying to claim that the cash value is $15,000 and wants to hire a lawyer. AARRGGHH!!!!
 
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JustAPal00

Senior Member
The actual cash value is what your old one would have sold for in it's previous condition (used). 50% of the cost to make and install a new one is VERY generous. The replacement cost is what the glass shop is going to charge you to replace it with a new one. That cost has nothing to do with the ACV of your old window! I wonder if your wife went to school with my ex wife, she knew everything too!
 

Banned_Princess

Senior Member
I just typed what the policy said because someone asked for it. I understand how it works. I just wanted a statement from an expert to show my wife to settle this argument. I showed her the policy and now she is trying to claim that the cash value is $15,000 and wants to hire a lawyer. AARRGGHH!!!!
Oh, I think she just wanted you to read what it said.

I am an expert in that I am familiar with the coverage we are talking about.

I am sorry your wife is wrong, and the argument is settled in that a 110 year old window is not going to get the [full replacement value] as covered by [full replacement coverage] if you don't [fully replace] the item.

If you don't want to [FULLY REPLACE] the exact item, then you only get depreciated value or [cash value] of the item which was broken... (thats the key.. pay to replace item, or buy a used one)

The insurance wants to give you 50% for a window that old, THEY are being reasonable and more then fair, while your wife is not. 115 years is old, but it wasn't stained by Jesus.

I'm sure if she wants to call a lawyer on this she wont be receiving a return call from anyone. Not even paralegal, or secretary. Don't worry.

Good luck sir.
 

AutoHomeAgent

Junior Member
What is the name of your state (only U.S. law)? TX

A wind storm destroyed our 115-year-old stained glass window last August. We have State Farm replacement cost insurance. We got an estimate to put the window back like it was for $15,000. The adjuster reviewed the estimate with the glass shop and agrees with the amount. However, since it us so old, they say they will depriciate it by 50%, meaning we get will get ~$7,500 minus the ~$2,500 deductable now, or a check for ~$5,000. We apparently can fix the window, or keep the $5,000. They will pay the other $7,500 to the glass shop after getting the final $15,000 invoice and the repairs are complete and inspected. My wife insists that we are entitled to the entire $12,500 cash, whether we fix the window or not. What are the rules in this case?
Policies can be tricky but in your case, it can be simple. What does your Policy state for loss. I can agree with them on the Deductible, that portion is a given but as for the loss of the window, was the window listed seperately in the values of it.

What State are you in?
 

Banned_Princess

Senior Member
Policies can be tricky but in your case, it can be simple. What does your Policy state for loss. I can agree with them on the Deductible, that portion is a given but as for the loss of the window, was the window listed seperately in the values of it.

What State are you in?
Excuse me, but we do not use this site to promote our own business, or gain new business, if you give out your phone number again, I'm going to delete it again.

Please don't make me chase down all of your posts, to have you banned.
 

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