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How does renters insurance calculate depreciation

Harrison, NY |

I have a computer I bought 2 years ago for around $600. It was destroyed in a flood. How much can I expect they will estimate its worth and how do they calculate such things?

Attorney Answers 4


  1. They calculate based on the terms of the insurance agreement. Review that and contact them with questions.

    This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.


  2. Your carrier should disclose the formula used to calculate depreciation. If not, it is pretty standard in the industry. You should be able to get the information on line as this is a regularly asked FAQ. Remember, you don't have to accept the carriers initial offer. Challenge it if you think their number is too low or calculation is not correct. Lastly, there are depreciation calculators all over the internet that may be of some use to you.

    Disclaimer- The information you obtain at our web-site or through postings on such sites as this is not, nor is it intended to be, legal advice. You should consult an attorney for specific advice regarding your individual situation. Any response given here is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response may change appropriately.


  3. It depends on the insurance contract that you purchased. It takes more space than allotted here to explain the full process. Travelers Insurance has a great explanation of how their policy works at https://www.travelers.com/claim/support-center/home-property/understanding-depreciation.aspx.


  4. Review your insurance contract and ask your insurance broker to explain it to you. As a quick idea you can check ebay or a similar site to see what the unit is going for. It also depends on the type of policy you have and whether it is for replacement cost.

    If this answer is helpful, then please mark the helpful button. If this is the best answer, then please indicate it. Thanks. For further information you should see an attorney and discuss the matter completely. If you are in the New York City area, then you can reach me during normal business hours at 718 329 9500 or www.mynewyorkcitylawyer.com.