First you need to know which you have on your policy. Here's a brief primer on Replacement Cost Value versus Actual Cash Value. http://en.wikipedia.org/wiki/Actual_cash_value
In short, ACV will be the depreciated cost of the same or similar (usually used) item today; the condition of the item is relevant in the valuation though this can be very subject and hard to ascertain on a damaged or stolen firearm. RCV would be the price of purchasing the same or similar new today (regardless of if yours was NIB, LNIB, hard-used, etc...).
Note that neither of these are based on what you paid for the item, or what the item was worth at the time you acquired it, or what it was worth at the time you insured it, or usually even any stated value of what you insured it for (that typically is just a ceiling of coverage, not a promise to pay that stated amount).
Once you establish that, you can argue with the insurance company over the RVC or ACV (whichever your coverage provides) on your firearm. I will say if you had one firearm lost in house fire, where there claim expense easily can exceed 300,000 after loss of use, additional living expense, clean up, etc... they will probably just pay what you file the claim for on the one firearm.
If you have 4 or 5 guns stolen, and the adjuster is more closely reviewing the claim as the firearms are 100% of the claim, they may do a bit more research.
This of course can vary by company as each insures property differently and adjusts claims differently. State Farm is a bit unusual as their agents have draft authority and can pay some small claims themselves. They usually err on the side of overpaying somewhat (due to being generally undereducated on the claim process, or to keep their customers happy, or both), but this pays off as the company then had the adjuster work for free
If you have some highly collectible item, get an appraised Agreed (not Stated) Value policy.
There's your primer on insurance for the day folks.
In short, ACV will be the depreciated cost of the same or similar (usually used) item today; the condition of the item is relevant in the valuation though this can be very subject and hard to ascertain on a damaged or stolen firearm. RCV would be the price of purchasing the same or similar new today (regardless of if yours was NIB, LNIB, hard-used, etc...).
Note that neither of these are based on what you paid for the item, or what the item was worth at the time you acquired it, or what it was worth at the time you insured it, or usually even any stated value of what you insured it for (that typically is just a ceiling of coverage, not a promise to pay that stated amount).
Once you establish that, you can argue with the insurance company over the RVC or ACV (whichever your coverage provides) on your firearm. I will say if you had one firearm lost in house fire, where there claim expense easily can exceed 300,000 after loss of use, additional living expense, clean up, etc... they will probably just pay what you file the claim for on the one firearm.
If you have 4 or 5 guns stolen, and the adjuster is more closely reviewing the claim as the firearms are 100% of the claim, they may do a bit more research.
This of course can vary by company as each insures property differently and adjusts claims differently. State Farm is a bit unusual as their agents have draft authority and can pay some small claims themselves. They usually err on the side of overpaying somewhat (due to being generally undereducated on the claim process, or to keep their customers happy, or both), but this pays off as the company then had the adjuster work for free
If you have some highly collectible item, get an appraised Agreed (not Stated) Value policy.
There's your primer on insurance for the day folks.
