What a Deductible Is
A deductible is the part of a covered loss that comes first from you.
The Department of Financial Services describes the standard, or base-policy, deductible as the amount of loss you bear before you are eligible for an insurance payment, generally applying to any loss. If the deductible is a given amount, you receive the amount of the covered loss less that deductible. It adds that some policies have other deductibles for particular events, such as windstorms, and tells you to read your policy to see which apply (NYS Department of Financial Services).
What your deductible is, and whether a different one applies to this loss, is in your policy and with your insurer.
Actual Cash Value and Replacement Cost
Actual cash value
- Replacement cost, less depreciation (NYS Department of Financial Services).
- Depreciation is an amount subtracted for wear and tear, and there is no set formula, so different insurers may calculate it differently (NYS Department of Financial Services).
Replacement cost
- What it would cost to repair or replace, with nothing deducted for depreciation (NYS Department of Financial Services).
- DFS says some insurers offer an endorsement for replacement cost coverage on contents, and that it is generally more expensive (NYS Department of Financial Services).
Which one your policy uses can differ between the building and its contents. Check your policy’s wording.
The guide says coverage for contents is usually on an actual cash basis unless you buy an endorsement for replacement coverage, which means you may not receive the full amount needed to replace damaged property (NYS Department of Financial Services).
Proving What Was Lost
The Department says to give the insurer a detailed room-by-room inventory with receipts and other proof of value (NYS Department of Financial Services). Its homeowners guide suggests photographs of major items, and a video of your belongings with drawers and doors open, backed up and stored away from the home. If you have not kept receipts, it says the insurer will generally reimburse actual cash value (NYS Department of Financial Services).
On the claim itself, the Department says an adjuster will inspect and estimate, and that you can get your own contractor’s estimate for comparison, though you must prove your loss (NYS Department of Financial Services).
If You Cannot Stay in the Home
The Department says homeowners and renters policies generally cover additional living expenses after an insured disaster, so keep records of relocation costs. If the home is uninhabitable, check the policy’s terms and document why it is unsafe, including who determined it and photographs (NYS Department of Financial Services).
Where H&H Fits
We work directly with your insurance carrier and provide documentation and direct billing for covered losses. Whether a loss is covered, and what your deductible and payment basis are, depends on your policy and the cause of the damage. See water damage restoration and structural drying.
If mold is a concern, see mold services: on a New York mold project, H&H performs either the mold assessment or the mold remediation — never both on the same project.
H&H is based in Saugerties, in Ulster County, and focuses on eight New York counties. Call and tell us where the property is and what happened, and we will confirm availability.