When the adjuster leaves your home, he will leave you with a contents inventory form. This form is used to document your personal property loss. Just like your home, Replacement Cost Coverage is paid after the repairs are made or the items are actually purchased. All Building (Cov A) and all Personal Property (Cov C) losses are figured at ACV. Actual Cash Value (ACV) is Replacement Cost less depreciation.  Lets look at an example using your contents inventory form. It will look similar to the example below:

Description                      Age        Purchased           Cost              R/C                               ACV  25"RCA Model#T45 TV   4yrs      Sears                    $400.00       $450.00                       $270.00

In this case you would receive $270.00 to replace the TV which would cost you $450.00 today. Once you purchase the TV for $450.00, you then submit the receipts to your insurance company and they will issue the difference from R/C (Replacement Cost) and ACV. You'll get an additional check for $180.00.  The monies withheld or the $180.00 is called holdback . By policy conditions, you have 180 days from the date of loss to apply for these Replacement Cost benefits. On the surface this looks pretty good. You get a brand new TV to replace your 4 year old TV. The typical contents list would include from 500 to 1,000 items. Lets add a computer system to the mix.                                        

Description               Age       Purchased               Cost            R/C                                ACV        HP Computer P-3          5            Circuit City              $1000         $499.00                       $249.50

In this case the computer is a Pentium 3 or older computer. The prices have gone down and you can buy a Pentium 4 computer now for about $499.00. This is called LKQ or Like Kind and Quality. The adjuster has the choice to do this. With just these two items you now have $519.50 to purchase $949.00 worth of personal property. This is just two items. You've got about 998 items left. Expect to get less than half of the money to replace your items and have 180 days to do so.

Now once you get into your building, especially in winter months, you'll find it colder in the building than outside and you'll find it difficult to write every item you've lost. Do it as you'll wish you had before the loss once you know what you're getting to buy all your items. I always recommend doing the junk drawer first. Everyone has one of these. This is the catch-all drawer where you keep scotch tape, tape measures, pencils etc. Write everything. You'll find this monotonous and more than likely will not be able to complete this especially in less than desirable conditions. If you do, you'll find it's between $300.00 to $500.00 worth of personal property in just one drawer. It's important to get everything!

Enter your building with a video camera. Start at the floor and go upwards to the ceiling from side to side. Open drawers and video tape everything. Now go inside and view the video tape while making notations on the contents inventory form. Separate each room. Now order a dumpster. Place the dumpster in a convenient location. Have one person go in to remove the items while the other records serial numbers and important information on the contents form. Dispose of anything plastic as they will hold the smell of smoke.

Smoke is corrosive to metal and fatal to circuit boards or electronics. It may work now but it will not shortly. Brass or metal items will become pitted. Once you've recorded the item and have video of it, toss it in the dumpster.This is a difficult process and it requires a lot of time.  This is one area a Public Adjuster really earns his money.

To close this chapter, everything in your claim is based on little things that add up to be thousands of dollars. Your policy does not make things easy on you. A Public Adjuster's fee can easily be made up in the contents area alone. Ask yourself why, if you have Replacement Cost do you get ACV. Why do you only get 180 days after your loss to purchase these items, otherwise you forfeit that money? Why is your home depreciated?

Homes do not depreciate, they appreciate. How are you supposed to go out and buy $100,000.00 worth of personal property with $50,000.00 (ACV). Whose depreciation schedule does the adjuster use? Why is it I have to prepare my claim? I've paid my premiums for years and have been a loyal customer. The answers are obvious. This is an unbalanced situation that you must take control of.  DO IT! (See A Claim Story to see exactly how Property Adjuster Associates can benefit you and how coverage's make a difference).