# What about the refrigerator with the loss of value actually?

Older and already used devices often lose value quickly. After a few years, it is difficult to estimate the true time value of a refrigerator reasonably realistically, both for a loss of insurance and for the handover to the tenant.

### useful life

Of course, a reasonably realistic estimation of a "time value" first of all requires a determination of the average life of the refrigerator.

From a financial point of view, kitchen appliances such as the refrigerator are depreciated for 7 years. On average, however, technically speaking, a lifespan of around 10 years can be assumed, even if individual refrigerators can last much longer.

### losses

Of course, once a refrigerator is needed, it is worth less than a new model. Similar to the car, electrical appliances lose more value in the first few years than in the following years.

Insurance companies that replace damages either use their own tables, very often the so-called replacement value for compensation for damage.

The replacement value is the value that a similar device would currently cost in the same state and age. For insurance contracts, always make sure which value is actually replaced.

### Loss of value with uniform degressive decrease

For example, in the table below we have calculated a uniform loss of value over 5 years. An annual depreciation of 25% was assumed.

Value dateTime value with evenly decreasing the value by 25%
after 1 year75% of new value
after 2 years56% of new value
after 3 years42% of new value
after 4 years32% of new value
after 5 years24% of new value

For estimating the value of an old refrigerator, for example, for the transfer at a handover, you can use these approximate values ​​approximately.

Deviations up and down are, of course, always possible. Also to be considered:

• the state of preservation of the refrigerator
• possible defects and functional restrictions
• technical equipment
• Price decline in the meantime in the trade

### Tips & Tricks

An easy way, a reasonably realistic Replacement cost To determine is to look on the Internet for identical devices of the same age and condition, and to form an average of the prices.