We suffered fire loss from the forest fire this past summer. We have Replacement cost insurance if we actually replace the item, or we get actual cash value less depreciation if we do not replace the item. I have a Husqvarana snowblower I lost in the fire that I bought used for $400 Its an st124. Very nice shape, ran well. They put the replacement cost as $500 and their source was ebay and an older ariens snowblower model……..then they put the depreciated value at 50%, so I would get $250. Does this sound right to you? I live in Canada, insured by TD. Then also is what they are doing is lets just say a shovel I bought in 2020 for $20, they are adding our provincial tax to the $20 and calling that replacement cost, when that shovel today would be over $30 to replace…….. and then on top of it depreciating it 50%. Everything was depreciated 50% even my brand new stuff in boxes never used. Please help, how do I fight this. Obviously my snowblower is not worth $250 when they found an older one than mine for a comparable and it sells for $500. Should replacement cost be based on new item? How do they draw the line on that? Some items of mine they used new item price for replacement cost, then some they used a used price, then alot they just used the price I paid for the item 5 years ago and added tax to it……….. then they depreciated everything by 50% They are completely ignoring inflation and current market prices today! So if I go buy the item to replace it, and it costed me $30, they would only give me the difference up to the $20 plus tax as that is there comparable replacement cost value they used if they only added tax to what i paid 5 years ago. I hope this all makes sense.
Posted by dynocompe