You have probably heard about depreciation with respect to things such as your car or your electronics, but not a lot of people talk about home depreciation in the surrounding area of Opelika, AL. Elliott & Associates Insurance can help you navigate through the advantages and disadvantages of a home depreciation assessment of your policy.
Your home may lose its value as things start to break, furniture becomes outdated, or possibly a neighborhood’s property value decreasing. It’s important to note that there are cases where homes may increase in value due to inflation or desirability of a location.
Benefits and Drawbacks of Home Depreciation
There are benefits and drawbacks to home depreciation. It’s important that you talk to someone at Elliott & Associates Insurance so that we can help you navigate through the benefits and drawbacks.
Many times clients decide to have their home assessed for depreciation so that their home insurance premiums are lowered. You could save money on your home in this way, but decreasing the value of your home may make it so that rebuilding and increasing the value later is harder to do.
How to Get Your Home Assessed for Depreciation
Getting an assessment for depreciation is simple. After your appraiser comes, they will determine the current value of your home and how much it would cost to rebuild it. Then a statement is issued to your insurance agent.
Recoverable Depreciation Explained
Recoverable depreciation is the cash value of your home and its replacement value’s difference. In order to limit fraud or frivolous claim payouts, the homeowner’s insurance claims are paid from the actual cash value and then recoverable depreciation. After you make the claim to your property and repair it, your insurance will pay you a check for the recoverable depreciation. You will only be able to recover depreciation if your policy has replacement cost value coverage.
If you have any more questions about home depreciation, reach out to Elliott & Associates Insurance at our office or call us at 334-745-0888 for service in the Opelika, AL area.