Some people have found it helpful to use a tape recorder to create the basic list of items for the inventory. Your insurance agent or adjuster may have inventory forms that can help you organize the job. Photographs may prove valuable in recording specific damage. Next comes the task of valuing the loss. This could be on an actual cash value or replacement cost basis, depending on your policy.
Receipts are helpful in establishing the items' original value.
Nonetheless, the insurer and insured must come to an agreement about the value of damaged articles. If this cannot be arrived at in the loss adjustment process, provision is made in the policy for the appraisal of goods and the arbitration of differences. Some insurance policies give the insurer the option to repair or replace an item, whichever is less. Other policies give the option to the owner. In either case, when the dollar value of the property has been transferred to the owner, the property belongs to the insurer and may be disposed of by the company for its salvage value.