2024-12-12

Today, Jake, an adjuster from Sedgwick, visited my home. He was professional and courteous, and I expect to learn more about his assessment in the coming weeks.

As expected, some of my property is being depreciated in value for the purposes of the claim. For example, my cabinets and tile flooring — both less than 10 years old, in excellent condition, and still in style — are being valued below the cost of replacing them with new materials. To illustrate: if replacing the cabinets costs $100,000, depreciation may reduce their value by $15,000, meaning I would only be reimbursed $85,000. The remaining $15,000 would come directly out of my pocket just to restore the kitchen to the condition it was in before the loss.

This is a common issue with third-party claims. With my homeowners insurance, I pay extra for replacement cost value (RCV), which reimburses the full cost of replacement rather than applying depreciation. Depending on how this claim progresses, I may ultimately need to use my homeowners policy and allow the insurance company to pursue recovery from RXO and Costco through subrogation.

For now, I will continue monitoring how this process unfolds.