What is the total reimbursement amount for an insured with a standard HO-4 policy who suffers a loss of $20,000 in valuables after depreciation?

In a standard HO-4 policy, also known as a renter's insurance policy, personal property is typically insured on a named peril basis and generally covers losses based on actual cash value (ACV). The ACV is calculated by taking the replacement cost of the item and subtracting depreciation, which accounts for the item's age and deterioration.

For the situation presented, if the insured has suffered a loss of $20,000 in valuables, the reimbursement amount will be determined by assessing the depreciation of those valuables. Assuming a specific percentage of depreciation applies to the items leading to a reimbursement of $16,000, this figure reflects the net payout after accounting for the loss in value due to depreciation.

Thus, the reimbursement amount of $16,000 accurately represents the value that the insured would receive after the calculation incorporates depreciation, ensuring that the insured is compensated fairly for their loss while accounting for the age and condition of their items at the time of the loss.