When you experience personal property damage and have insurance on the property, your policy has its own rules as to what is covered, how much is covered and how you will be compensated. Let us take for example a car that your own that has been damaged in an accident on a highway. Here, things can go in many directions. You call the insurance company and they will let you know the damage estimate. You take the money it determines as the cost to repair the damage. You can also show the insurer the picture of the damaged car to put a value for the repair cost. You pay out of pocket for the car damage and claim the money later. You present a couple of estimates for different mechanics and present it to the insurance company in order to resolve the issue.
Your car is beyond repair or totaled which means the cost of repairs is way above the value of the vehicle. In this case the insurance company estimates the current value of the car and sends you a check for the amount. Whether you would repair the vehicle or buy a new vehicle is your choice. Sometimes it so happens that the insurance company’s estimate for the vehicle is too little to buy a new car. You have the right to appeal for a re-estimate here. The result is, you will be offered a new estimate with a new amount or the insurer will stay with the previous amount.
Similar theory holds good to other personal properties involved, such as your personal belongings destroyed during a flood or storm. This means your fifteen-year-old bedroom furniture set ruined by a recent flooding will earn what it is worth at the time of the incident. The insurance company will not award the actual price you paid for the covered set fifteen years ago. Instead, it will determine the depreciation and market value of the set, which may total to an amount that you would get if your sold it in a flea market. Trying to prove that your furniture is a very valued piece of item can be a Herculean task. If you are still concerned about the price, it pays to get a written estimate from an insurance adjuster and present it to your subsidiary insurance company.
Some insurance companies use a standard estimation sheet to calculate the depreciated amount or value of the item on the date of damage or loss. Some companies also have a limit on what amount you can collect from them. Then there are damages that cannot be covered because they are caused by the negligence of the insured or failure to see the consequences thereby. If you still realize that you have more damages than the insurer limit, you can always file a claim through small claim court or an attorney. Make sure that this move is not colliding with terms and conditions on your policy.