Comment on Insuranace is a joke
Hikermick@lemmy.world 10 months ago
Just watched someone explain this but it was about house insurance. When you sign up they give you a replacement dollar amount. Should your house burn to the ground they deduct money from that amount due to depreciation.
That’s true, but that depreciation is often recoverable. That deducted amount is paid out when you repair or replace the damage.
Cars don’t work like that though, OP should fight the valuation unless they left out critical information like a $5,000 deductible.
altphoto@lemmy.today 10 months ago
LOL, yet you can’t buy a depreciated house can you? No, cuz there are none. Even a burnt down place represents a mortgage-able amount of money. That’s the lie. There’s no depreciation, they just want to pay you less as time goes on. At least for a house anyway.
fodor@lemmy.zip 10 months ago
That’s basically untrue. If a building is rotten and full of mold, then it might have to be torn down before anything new could be created. Then it might have negative value, but the property itself could still have a lot of value.
thermal_shock@lemmy.world 10 months ago
Doesn’t make his claim untrue, just an exception.
altphoto@lemmy.today 10 months ago
Okay let me find a negative value property around my neighborhood… None! Could it be a get rich quick loophole? Nope.
WoodScientist@lemmy.world 10 months ago
Negative value property? Easy. It’s called a timeshare!