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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Market value. Van Gogh paintings were essentially worthless during his day. Now they’re worth millions.
Insurance is based on the value of the property at the tome of its loss.
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