Question My question is this, I've got conflicting information on whether there is a "formula" ins companies use to calculate the settlement for the lose of a 72 inch in diameter tree at chest height 50' tall.
Answer Kirk,
If you will read the policy you should see that the insurance company will provide coverage for the tree, but most insurance companies will limit the amount they are willing to lay out per tree.
If you are fortunate to have a policy that does not limit the amount the company will pay for the loss of the tree, then you will do well to seek the advice of an arborist, the local Extension Agent, or a public adjuster as to the estimated value of the tree. The value will be a best guess estimate, as this is an old growth tree.
If the insurance policy does not provide adequate coverage for your loss of value, you may want to check with your CPA to determine whether or not the IRS will allow for a deduction equal to the uninsured value of the tree (uninsured property loss).
