Guest Posted March 3, 2015 Report Share Posted March 3, 2015 Are things worth, for insurance purposes, the cost you paid for the item, the MSRP of the item, or the cost it would take to re-acquire the item? For example, if I buy a spendy TV worth 2k, but I get it on sale for half off. If it get's stolen and my insurance covers it, would I consider it a 2k loss or a 1k loss. Purely hypothetical. Quote Link to comment Share on other sites More sharing options...
pretre Posted March 3, 2015 Report Share Posted March 3, 2015 It is the 'replacement cost', i.e. how much would it cost to replace the item? So, for example: - You buy a $2000 TV for $10 through a combination of awesome deals. - You are insured. - It is stolen the same day. - It would cost $2000 to replace it. - You will get $2000 This is an oversimplification, but should answer your question. Quote Link to comment Share on other sites More sharing options...
andozane Posted March 3, 2015 Report Share Posted March 3, 2015 I don't know any facts on this, but in my dealings with insurance, it usually is "Cost of replacement" they care about... Quote Link to comment Share on other sites More sharing options...
Guest Posted March 3, 2015 Report Share Posted March 3, 2015 It is the 'replacement cost', i.e. how much would it cost to replace the item? So, for example: - You buy a $2000 TV for $10 through a combination of awesome deals. - You are insured. - It is stolen the same day. - It would cost $2000 to replace it. - You will get $2000 This is an oversimplification, but should answer your question. Isn't that sort of a scam, though? Quote Link to comment Share on other sites More sharing options...
pretre Posted March 3, 2015 Report Share Posted March 3, 2015 Only if you could get the TV again for $10. Quote Link to comment Share on other sites More sharing options...
AgentP Posted March 3, 2015 Report Share Posted March 3, 2015 It's not a scam. What if I gave you the $2000 TV and it was stolen. Are you supposed to be penalized because it was a gift? No, you get the cost of replacement. Under your hypothetical, if the insurance company was only liable to pay $10, because you got such a good deal, they should be charging you a hell of a lot lower premium, and I assure you they are not. Quote Link to comment Share on other sites More sharing options...
ROGRE Posted March 3, 2015 Report Share Posted March 3, 2015 Tangent/: Based on number of insurance commercials on TV it would appear to be a fairly lucrative business. Quote Link to comment Share on other sites More sharing options...
Lord Hanaur Posted March 4, 2015 Report Share Posted March 4, 2015 Wow. I own a Farmers Insurance Agency. Feel free to PM me with questions. Quote Link to comment Share on other sites More sharing options...
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