by Guest » Fri Jan 24, 2014 10:58 am
Hi,
I have a garage where I place all my business goods to be sold later. Recently, a pipe broke and flooded the entire unit. There was 60 units of commercial vacuum cleaner and they were submerged in ice cold water for a few days. The claims adjuster asked me for the receipts. Though I didn't pay much for them, but I was going to resell for $250 each. Can anybody tell me what would they base the claim against? The worth of the vacuums or what I paid for it? I had flood insurance and the vacuums are retail at 500 new.
I have a garage where I place all my business goods to be sold later. Recently, a pipe broke and flooded the entire unit. There was 60 units of commercial vacuum cleaner and they were submerged in ice cold water for a few days. The claims adjuster asked me for the receipts. Though I didn't pay much for them, but I was going to resell for $250 each. Can anybody tell me what would they base the claim against? The worth of the vacuums or what I paid for it? I had flood insurance and the vacuums are retail at 500 new.
Posted: Fri Jan 24, 2014 01:23 pm Post Subject:
If they are covered it still depends on your policy (replacement cost or actual cash value). In other case, no more then what you could replace them for (what you paid). You can then buy them again and you are right back where you were before. Their value is not what you _could_ sell them for as they were not sold. The insurance company does not owe for a value that they _could_ have been (they were not sold at the time of the loss).
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