<prompt> Human: I recently had a power surge in my neighborhood that destroyed about 8k in electronics. Ive had an electrician come out to the property and inspect the home and vouch that a surge did occur and vouch that all the items I am claiming are infact broken.Today I spoke with my agent handling the case state farm. She said I need to itemize everything destroyed and place a fair market value on the replacement cost of like kind items. I also have to rate the condition the damaged items are in, but since most of the electroncis are home stereo stuff 60 led tv, AV receiver, apple tv, etc, in my mind everything is in A condition except that it doesnt work now. My television, although 1080 and not 4k, looks absolutely spot less, apple tv is the newest version, pioneer receiver has been in a glass cabinet the whole time. The two computers that blew were 2 year old gaming computers that now to replace are 2000 or more for the same model in the same series. The cost to replace everything with moderately priced, current models is about 8000. The insurance agent handling my case told me they would depreciate some amount off the total and then write me a check for the difference between my deductible and the amount the agency will cover. My deductible is about 3500 and Im sure they are going to depreciate the full 8000 down to about 6000 or worse.The problem Im facing is the agent told me I will receive a check that I then have to spend to replace everything and then send them receipts showing I replaced all the electronics. There is no way I have 5500 plus their 2500 to replace everything so in my mind I need to prioritize what is most important. If I decide NOT to replace my gaming computer and my 60 TV, will I lose the adjusted amount of money they are offering me? In other words, do I have to spend all the money they issue for replacement if I dont have the money to replace all 8000 worth of gear? My understanding was they will cover anything OVER the deductible but that I dont actually have to spend the deductible. It seems stupid to pay for home owners insurance, have a massive surge that destroys a ton of equipment and then be forced to spend their highly depreciated check on the exact items that are destroyed right then and there. If the equipment broken is 8000, and they are only going to give me 2500 cash, its going to be tough for me to spend 3500 on my deductible, plus their 2500 coverage, PLUS another 2000 lost in depreciation just to buy the same stuff I had prior to the storm.Any help on what I should do before I fill out their personal property itemized sheet?  <response>: Just for future reference, almost every insurance policy offers an option to carry a replacement cost rider instead of depreciated value or actual cash value coverage. If you elect to carry replacement coverage, youd get a lot more money. It doesnt help you now, but might help others. 