For buildings such as the house, separate garage, sheds, etc.
Your insurance pays the ACV until the items are replaced. Depreciation is determined by the age and condition of the item. When you have the items replaced, send your insurance company the receipts, and they will reimburse you up to the amount you actually spent up to the maximum amount stated on your settlement letter.
If the total cost of the completed repair is less than your insurance’s estimate, your full deductible will still apply, and the recoverable depreciation will be reduced accordingly.
You may always upgrade and pay more than what is listed on your estimate, but the most you can get reimbursed for is the limit shown on your settlement letter.
For other structures on your property that are not buildings, such as fences, flagpoles, driveways, etc., ACV is only paid, which is replacement cost less depreciation. No additional payment will be made when those other structures are replaced.
If we cannot do the work for the amounts listed on your estimate, we will speak with your insurance company about the differences and file for a supplement.