Traditional insurance policies are written on a "replacement cost" basis. Which means.....the carrier will initially pay what they consider to be a depreciated

Traditional insurance policies are written on a "replacement cost" basis. Which means.....the carrier will initially pay what they consider to be a depreciated value for the item, then when you purchase the identical or similar item, you show them the receipt, and the carrier then forwards a secondary check for the difference of the depreciated value (payment 1 to you) and the current retail price.