Devaluation is the process of making something’s value decrease. For example, if you have a vast collection of plush animals that used to be a market craze, you might have once valued your collection at $5,000 for insurance purposes. It’s now several years later and you realize you’re still paying for insurance, but your collection now has no market value whatsoever. Unfortunately, your plush animal collection has undergone devaluation. Fortunately, your insurance payments can now be reduced.