How Replacement Value Is Calculated Determined: Depreciation and Comparable Items

Note, this policy is not a full replacement value policy.

Each claim is reviewed individually on its own merit.

What is Depreciation and when is it considered?

Depreciation accounts for the reduction in an item’s value over time due to normal wear and tear, damage, aging, or obsolescence.

Applying depreciation ensures that settlements remain fair and consistent by taking into consideration the item’s age, condition, and expected useful life.

Depreciation is applied in accordance with industry standards and the terms of your policy agreement, which read as follows:

Our liability to pay in respect of “property damage” to “contents” shall be limited to the reasonable replacement value with a deduction for depreciation or repair cost of property damaged, stolen or lost at the time of the “occurrence,” whichever is lower.

How are Comparable Items determined?

When an item damaged by a guest is no longer available for purchase, Safely evaluates the claim by identifying a comparable replacement. This means we look for an item of similar type, quality, age, features, and functionality to ensure a fair and accurate assessment.

Using these criteria, we determine an equivalent option that reflects the value of the original item, allowing us to process your claim in alignment with Safely’s policy guidelines, which read as follows:

If an item is not directly replaceable, we shall pay the replacement cost of the nearest equivalent item that is reasonalby available at the time of the 'occurence".

Best Practices for Submitting Claims

To assist in processing your claim quickly and efficiently, here are some examples of documents you can provide to support the evaluation of your claim:

Photograph of the manufacturer’s label with model and serial number

Original purchase receipts

Overview photo showing the entire item (any recent images are helpful)

Detailed damage photos – both close-up and wide-angle images.

Please note that the above list is not exhaustive and may only be requested when applicable.

How Replacement Value Is Calculated Determined: Depreciation and Comparable Items

Safely aims to ensure a smooth and efficient claims experience. As part of this process, we would like to provide clarity on how depreciation is applied and how comparable replacement items are identified when evaluating property damage claims, in accordance with the terms of your Safely policy.