Loss of Personal Property
What happens now?
You’ve made a claim, now what? Here, we give you some guidance on how to get the ball rolling as you work to catalogue the items you’ve lost in a ‘Schedule of Loss’. Certain situations may differ from these guidelines, in which case, talk to your Claims Specialist for personalized advice.
Step 1 – Understanding Your Policy
In most cases your home, personal property and additional living expenses have specific limits of coverage, all of which can be found in your policy. It’s important to be aware that each policy limit may affect the amount you can claim in any one area.
This means the cost, at the time of the loss, to repair or replace an item (whichever cost is lower), with new property of similar kind and quality.
Actual Cash Value (ACV)
This means the cost, at the time of the loss, to repair or replace property, less an amount to cover depreciation.
Step 2 – Preparing a Schedule of Loss
Download Schedule of Loss Form
The next stage of any loss is to document the items lost or destroyed. This information is gathered in a Schedule of Loss form and usually must contain the following information on each item:
Example Schedule of Loss
|Item #||Room||Description||Brand||Model||Supplier||Quantity||Age of Item (in years)||Original Cost (approximate)||Current Replacement Cost|
|001||Kitchen||2 Slice Toaster||Black & Decker||TR1278B||Canadian Tire||1||0.5||$45||$44.99|
|002||Bedroom 1||4 Drawer Dresser||Ikea||Songesand||Ikea||2||4||$150||$199|
|003||Bedroom 2||Printer, All in One||HP||Deskjet 2665||Staples||1||2||$80||$69.98|
|004||Bedroom 2||Area Rug, 2’ x 3’||Unknown||Unknown||Walmart||1||3||$40||$34.99|
Each item should be given a unique line number starting with 001.
The number of articles which carry the exact same description (i.e.) tea-towels, toothbrushes.
A brief, but accurate description of the item including brand name, model number, size, colour or any other information that will reflect the value of the item.
The store or place where the item was purchased and/or whether the item was acquired as a gift to you.
The age of the item in years. If you bought the item used, estimate the age of the item.
The original amount paid for the item.
Present Replacement Cost
Today’s cost to replace this item with the same quality and features. Do not include any taxes in this amount.
Step 3 – Review & Adjustments
Once the Schedule of Loss is prepared and submitted to your Claims Specialist for review, the following adjustments may be made:
Calculation of Actual Cash Value
This will occur whether you have Replacement Cost coverage or not. Generally, the calculation is used to provide a cash advance so that you can begin purchasing replacements for the items lost.
In the event of non-replacement of any one item, this ACV may be used as your basis for settlement.
Step 4 – Replacement of Items
Generally, you have a time limit to replace the items you have lost. It is best to check with your Claims Specialist as to the specifics of your policy. As each item is purchased, identify on the new receipt the item # from the Schedule of Loss that you are replacing. Submit the receipts in a batch form with any other documentation that may be pertinent. This will help speed up your payments.
Q&A - Questions & Answers
A: Yes, but on a separate schedule. Ask your Claims Specialist about this.
A: A professional restoration firm is typically involved in your claim to help you identify the restorable items.
A: Subject to your policy limits and approval from your Claims Specialist, your insurance company will reimburse the repair firm.
A: Your insurance company retains the salvage rights to any item(s) which you have replaced.
A: Mark them as gifts and check with the person who gave them to you or check with a retailer for values.
A: Estimate the age as best you can.
A: We know that insurance can only replace the tangible items in a loss and, unfortunately, there can be no compensation for the sentimental value of an item. If an item of like, kind and quality cannot be identified, ACV will be used to calculate your loss. Therefore, a value should be established in order for a payment to be made.
A: Special coverage and limits may be applicable to these items. Please check with your Claims Specialist for full details, but (normally) Replacement Cost coverage does not apply to antiques, fine arts, paintings, statuary or similar items which by their inherent value, cannot be replaced with a similar article. If value cannot be established, ACV will likely apply.
A: Yes, list them, but to obtain replacement cost the items must be in working order and be in use for their original intended purpose at the time of the loss. Otherwise, settlement will be based on ACV.
A: If you do not want the item repaired then you may be entitled to the lower of ACV or the cost of repair. Please identify these items to your Claims Specialist at the time of listing.
A: Sometimes grouping similar items is the only logical way of listing them all; however, know that your Claims Specialist may ask for more detail.
A: No, your loss has to be substantiated if you expect any financial recovery. However, your Claims Specialist may recommend a professional listing service which can assist you with the listing and identification of write-offs in the event of a major loss.