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Last Post 05/23/2011 4:34 PM by  we2
Settlement of lost CD's and DVD,s
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Ray Hall
Senior Member
Senior Member
Posts:2443


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01/26/2011 10:15 PM

    These UPP losses do not come up much in cat. claims, but are very frequent in regular daily claims on fire and theft losses. Some people love these disk and have them in the auto and the the house when they are a total loss to to ACV value from these two perils.

    It sounds kinda hard nosed; but these items have very little value when the label is broken and they are palyed several times. I have had claims with 200-300 disk are gone. Some cost 39.95 and some cost 19.95 . some were purchased 15 years ago and some were purchased two weeks ago.

    I am one of the persons who think the inventory should be very accurate with label descriptions and have found most people who have this amount do not have a problem drawing up the inventory list and giving it to the local police on theft claims.

    Now the hard nosed part..... take this  list down to the best pawn shop in the area and see what the same label can be purchased for and make this fair market value to the insured as cash settlement. No not RC less depreciation. All property policys state we(the company) have this right. Don, t whine about lawsuits, unfair claims etc. It,s the carriers right. Some adjusters have even agreed to replace all the disk lost with replacment that are as good, with free delivery. I know thats not how we do it on storm losses when all the disk get wet from the hole in the roof. Your file examiner may think like me and we all know it,s what does it take to close a file !\

    OOP, s this may be my last bomb thrown.

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    Leland
    Advanced Member
    Advanced Member
    Posts:741


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    01/28/2011 10:38 AM
    Ray is correct, this is actually how most policies are written. I made another post on this issue recently. The value on craigslist/ebay/garage sale/thrift store/pawn shop is the ACV which is the same as fair market value.

    Taking a retail purchase price from 5 years earlier, calculating some kind of theoretical life expectancy and applying depreciation is not the first method listed in the policy under the "loss settlement" provision. It is the second method, when there is no used market place pricing available.

    The problem is that even many file examiners will expect to see the second method used instead of the first because it is such a routine way to adjust claims.
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    Ray Hall
    Senior Member
    Senior Member
    Posts:2443


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    01/28/2011 6:11 PM

    Right on Leland. Some people have been doing catastrophe claims for one, two decades and don,t know any other way . except your first example. Can,t you just hear the staff adjusters' do you remember the cat. adjuster saying"... "that ain't the way I was trained".

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    we2
    Guest
    Guest
    Posts:20


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    05/23/2011 4:34 PM
    I agree that used CDs & DVDs are NOT worth RC less depreciation. Actually, many (CDs especially) actually play just fine after being carefully CLEANED w/a tiny bit of soap & warm water on a cloth followed by a warm water rinse. Granted the cardboard cover insert is probably ruined, but it's the sound or viewing that is more important. Anyway, most insureds do not want to bother with this if they feel they can get a new replacement (though their copy was used, so LKQ should be used as well, right?) The eBay price or pawn shop price should be sufficient as it will usually be considerably higher than a yard-/garage-sale price which is another criteria that may be used for ACV replacement. We need to be fair, but not taken advantage of. eBay sellers usually add $2.95 for S&H which is more than tax from a pawn shop, but could still be considered equitable. Be true to your ethics. What's right is right!
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