Keep Personal Payout

[Homeowner2021]

Hello everyone. We had a water pipe burst in our home soak the floor resulting in us redoing all of it. Since the water came down the walls it ended up damaging a TV and some other electronics along with getting the bottom of our furniture wet. The insurance company has said they will provide replacement cost for all of it with no problems.

The question I have is do we have to actually replace the items. The TV and electronics were rarely if ever used so it feels like it would be a waste to go and buy new ones. I think we’d rather just not have them and keep the money. Is this ok? Is something like this specified in the contract? My wife is hesitant to tell insurance agent we don’t really want a TV back in the room because they might just not pay.

 

[fed up]

There is a possibility that there will be money withheld from the settlement for depreciation. That money gets paid out when you show a receipt. No TV receipt, no money. If you are paid, keep the money for when you DO replace the set, where ever you put it.

 

[adjusterjack]

I think we’d rather just not have them and keep the money. Is this ok? Is something like this specified in the contract?

It's OK but there's three ways this can happen. If you get the ACV and there's a depreciation holdback you can waive the additional amount and not buy the replacements. That's addressed in your policy so it's legit. You likely have 6 months to decide.

The other way it can happen depends on the threshold in your Replacement Cost section. I have an old form that allows full payment if the claim doesn't exceed $500. Check your coverage to see what the threshold is. Might be higher. Once you are paid the full amount, the adjuster isn't going to care if you don't replace the items.

One more way is if the company has an informal threshold of a higher amount.

When you submit your inventory of damaged items, you'll find out how it works when you get the check.