deduct for depreciation? My house was robbed and I'm dealing with the ins company and they're telling me they deduct for depreciation - BUT my understanding was that replacement cost coverage meant there was no depreciation deduction and that's why I got that coverage. They are also telling me I can recoup the "recoverable depreciation" but only once I go out and buy all of the things that were stolen and submit the receipts. Is this how it works?Anyone out there have any experience with this? I'd greatly appreciate it.
I want to thank everyone who answered, you've all provided me with valuable information and it will be hard to decide the best answer, because they were all great! Thanks!

Insurance is a product of indemnification. To indemnify you as a customer for what was lost and put you in the same position you were prior to the loss.

In other words...you are buying a product (insurance policy ) to "replace" what was lost. The policy only pays replacement cost valuation on covered items like the House , contents etc. If you decide that you would rather have the proceeds to buy or replace the damaged item with something different or just keep the cash...then the policy states that the company will pay you based on Actual cash value ...or replacement cost LESS depreciation. If you replace in the same like ,kind and quality as before then the company will upon proof...reimburse you for the remainder ...up to the replacement cost value not exceeding the limits in your policy.

It pays to read your policy....even though it can be boring.

The company is actually telling you the truth. A "replacement cost" policy does guarantee you the full replacement cost, but it only pays when you incurr the cost - replace/repair the items/damages. It's absolutely standard.

Good buying.

Unfortunately, yes it is. Replacement cost coverage is just that-replacement cost. Insurance companies have a replacement cost calculator that calculates your replacement cost, which does include depreciation. I would strongly suggest providing receipts, and keep copies of the receipts for your files. Also, many homeowners policies give premium discounts if you have a monitored alarm system. If you are worried about future burglaries I would suggest getting a monitored alarm. Not only will this make you feel safer, and avoid future insurance claims, but you may be able to get a lower premium. Good luck.

FYI... I'm an insurance underwriter.