I’d like to understand better when it comes to replacing personal property that was damaged, what an insurance company owes their customer? For example, I understand that if a 5 year old couch is damaged, they would likely give you the depreciated value of the couch upfront and if you replace the couch, the difference in the price to replace it.
Now, let’s take a collectible. Let’s say the collectible cost 20 years ago $50. But let’s pretend its worth $500 as its no longer available. Should we expect the insurance company to cover back up to the original cost, or the value lost?
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It’s usually for the current value of the lost item. My wife and I just went through this when my idiot upstairs neighbor lit his apartment on fire and totaled most of our belongings. It can get kinda weird when it comes to certain items, and certain insurance products though. For example if you have a replacement cost policy and you have to make a claim that includes a tv that is five years old but originally cost $1500, they will give you up to $1500 to buy a new tv, even though a new $1500 tv is a much bigger/nicer tv than it would have been five years ago. The other place it got weird for us was items that we had done work on, we bought a solid oak dining room table from goodwill for 10 bucks and refinished it ourselves prior to the fire, turns out a “custom refinished solid oak dining table” is like $800 to replace
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