Great question. Home insurance can be extremely complicated and confusing. There’s no shame in not understanding something right away!
First off, recoverable depreciation
is the monetary gap between your fridge’s replacement cost and its current or actual cash value
. Over the last five years, your fridge’s actual cash value would have depreciated.
Since it sounds like your fridge is covered with replacement cost coverage
, your insurance plan should presumably cover the cost it would take to replace it with a comparable one in today’s market, regardless of your current fridge’s depreciated value.
Each company does this a little differently, so you’ll have to verify with your provider how they’ll send the money, to whom, and when.
Typically, once you’ve shown your insurance company
the replacement (or in some cases, repair) is complete, they should send a check for the recoverable depreciation amount your way. Or, they might send it directly to who’s repairing it. Again, it depends on your insurance company.
It sounds like your coverage is doing what you need it to here, but if after replacing your fridge you’d like to compare your policy with others or find a better price, the Jerry
app can help you gather quotes from top home insurance companies. (You can bundle with car insurance
, too!) Even better, Jerry also has experienced, friendly agents who can help you with your questions as they come up.