Patent ID: 8719061

Claim:
A computer system for determining whether to repair or replace an insured item in the nature of personal property, insured under an insurance policy, comprising: a computer processor, and one or more databases in one or more data storage devices accessible by the computer processor; the computer processor being configured to: access from the one or more databases data indicative of the repair cost of the personal property, including an estimated cost of repair and a probability of acceptance by the insured of the personal property if repaired, the probability of acceptance having a value in a range from zero to one, inclusive; determine the repair cost of the personal property by multiplying the estimated cost of repair by a factor based on the probability of acceptance by the insured, the factor based on the probability of acceptance having a value of one for a value of the probability of acceptance equal to one and a value of greater than one for a value of the probability of acceptance less than one; access from the one or more databases a cost of a replacement for the personal property and a salvage value of the personal property; determine the replacement cost of said personal property based on at least the cost of the replacement for the personal property and the salvage value of the personal property; compare said replacement cost of said personal property to said repair cost of said personal property; and determine, responsive to determining in the comparing of said replacement cost to said repair cost, that the replacement cost is greater than the repair cost, that repair of said personal property fulfills an obligation of the insurer to the insured at the lowest cost, and, determine, responsive to determining in the comparing that the repair cost is greater than the replacement cost, determine that replacement of said personal property fulfills an obligation of the insurer at the lowest cost; and store in the one or more databases data indicative of the lowest cost determination.