Depreciation Exposed

Pissed off can’t adequately describe it. We, all of us, unless there is a high ranking politician or 1%er (not the biker kind) in the crowd, are impotent in the most helpless incarnation of the word.

We live in a culture that promotes timid terror. I don’t know about you, but everything I have is insured- except my life because there’s not that much left, so why bother? I’ve insured what I can’t risk losing, in the hope that I am protecting the people I love from a colossal calamity.

This is the low down dirty of it. It doesn’t mean shit. For a long while we (that’s you and me, not the royal we) have been aware that coverage isn’t what it used to be. We’ve been paying for full coverage while gritting our teeth and accepting three-quarters coverage. We’re exposed.

We (my husband and me, as close as I want to get to royalty) work in an industry that sometimes peers in at the machinations behind insurance policies. Be afraid. Homeowners’ policies are especially inadequate. Insurance companies do not care if their insured are protected. Policies are written exclusively for risk minimization.

It used to be that property was returned to pre-loss condition, whatever the level of craftsmanship in the property was. If you had mahogany doors with gilded gold door knobs; those same doors and doorknobs would be paid for by your insurance policy. Now everything is depreciated. You’ll get what they give you and be happy to have it.

The absolute worst quality work will satisfy an insurance company in achieving depreciated pre-loss condition; scurrilous thieves preying on poor people, who do not have the guts and gumption to defend themselves.

Recently, a woman was faced with a bill for repairs to her home that she obviously could not afford to pay. She had faith that her insurance company would make her whole. Wrong. They told her she should have had her repairs completed by the fly-by-night outfit they’d tried to foist upon her. She was left with 48% of the bill and no money to pay it. She was lucky. Her contractor took the hit. But he can write it off you say. Is a write off going to pay his bills and buy his family groceries?

Next time you renew your insurance policies ask for a depreciation discount. Let your agent know that you understand the risk you’re taking and you realize that insurance will not likely pay the full replacement value of your home and its contents. Tell your agent you’d like a discount to balance the risk of your potential losses.

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About elroyjones

Married, no children, responsibly self-directed, living happily.
This entry was posted in Autonomy and tagged , , . Bookmark the permalink.

10 Responses to Depreciation Exposed

  1. Insurance, like medicine and banking and real estate, is a business- almost always a “publicly owned” business. Any “publicly owned” company has to do better than make a profit. Its profit margin must grow quickly enough to keep “shareholders” on board.

    It’s sometimes interesting to contemplate just how much the insurance, medical, banking and real estate industries have affected the very way we think.

    Like you say, we live in “timid terror”.

    • elroyjones says:

      It’s unsettling to contemplate how those industries affect the way we think and the way we live.

      I am fond of someone who is GROSSLY overpaid, if you consider financial compensation should be commensurate with doing something worthwhile for society. The someone I speak of works in case management for medical preauthorization. The voice on the other end of the line that says, “No.”. That same person had the audacity to say that survival wasn’t possible on less than $100k per annum.

      It is abundantly clear, to us all, that I am not surviving.

  2. A good tip for any of us. And the timidity stretches through almost every aspect of life, much of it coming under the heading of Political Correctness. For instance, who decided that great works of Classic Greek Statuary could be shown in full on TV — that we must be protected from breasts and genitals on some of the signal sculptures of huiman history. WHo decided that we glimpse a woman nursing, or some plumber’s butt crack when he bends over? BY all that was ever held holy, why must we all pay for the licentiousness of others. Especially to the extent of fuzzing out most of a nakecx baby being changed.

  3. You should write children’s books… really scary children’s books…

  4. George says:

    Good advice, young lady! Kinda makes me glad all my inanimate valuables aren’t valuable.

    • elroyjones says:

      The thing is they’re valuable to you and your family if you have to replace them as an out of pocket expense so an insurance company can protect its bottom line.

      We don’t have anything that’s priceless but the stuff we have has been acquired over decades. We couldn’t afford to replace it all at once.

  5. I have problems with an industry whose function is to take money from one person and hand it another and take a cut for doing it.

    • elroyjones says:

      I’m right there with ya! They’re a bunch of bottom feeders, selling fear, encouraging people to bet against themselves. Now I’m all worked up, again!

      • urell says:

        So? What are we going to do about it? Bet against ourselves forever? That’s exactly what I said couple of years back in My Crusade. Anyone interested in turning the tide in our favor? Join the crusade!

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