When a personal property item is damaged or destroyed, the insurance company will typically pay the actual cash value (ACV) of the item, which takes into account the depreciation of the item since it was purchased. The ACV is calculated by subtracting the item’s depreciation from its replacement cost.

However, most homeowners insurance policies also include a provision for recovering depreciation, known as the recoverable depreciation or replacement cost value (RCV). This means that once the item has been repaired or replaced, the insured can submit the receipts or invoices to the insurance company to show that the item has been replaced or repaired.

The insurance company will then typically pay the difference between the actual cash value (ACV) that was initially paid and the replacement cost value (RCV) that is now due, which includes the previously deducted depreciation. This is commonly referred to as a depreciation holdback or depreciation recoverable.

It’s important to note that in order to recover depreciation, the insured will need to submit proof that the damaged or destroyed item has been repaired or replaced, such as receipts or invoices. It’s also important to carefully review your homeowners insurance policy and discuss any questions you have with your Public Adjuster to ensure you understand your coverage and how depreciation is handled.

If your neighbor’s tree hits your house, the first step is to determine who is responsible for the damage. Generally, if the tree was healthy and well-maintained and a sudden storm or natural disaster caused it to fall, the damage would typically be covered by your own homeowner’s insurance policy. However, if the tree was diseased or in poor condition, or if your neighbor was negligent in maintaining the tree, their homeowner’s insurance policy may be responsible for covering the damage.

The best course of action is to contact your neighbor and their insurance company to report the damage and discuss liability. If it is determined that your neighbor is responsible for the damage, their insurance company may pay for the repairs to your home, up to their policy limits.

In some cases, your homeowner’s insurance policy may cover the cost of the repairs and then seek reimbursement from your neighbor’s insurance company, a process known as subrogation.

It’s important to note that insurance coverage can vary depending on the specific circumstances of the incident, the insurance policies involved, and the applicable state laws. If you are unsure of your coverage or who is responsible for the damage, it’s best to consult with a licensed public adjuster.

Your tenants are generally not covered by your homeowners insurance policy. Homeowners insurance is designed to protect the property owner’s interests and typically only covers the policyholder and their immediate family members who reside in the home.

If you are renting out your property to tenants, it’s important that you have the correct insurance policy that is specifically designed for rental properties. Landlord insurance, also known as rental property insurance, can provide coverage for the structure of the building, liability protection, and loss of rental income in the event of a covered loss. It can also provide coverage for any personal property that you own on the rental property, such as appliances or furniture.

Additionally, if your tenants have their own personal belongings, they should consider purchasing renters insurance to protect their personal property in the event of a covered loss, such as theft or damage from a fire or water damage.

It’s important to carefully review your insurance policy and discuss any questions you have with your insurance agent or public adjuster to ensure that you have the appropriate coverage for your specific situation.