Tag Archives: Depreceiation

Applying Depreciation in California – Understanding the Guidelines

The California Insurance Code mandates if a property insurance policy requires actual cash value payment, the payment must be based on the property’s depreciation for two types of claims: (1) a partial loss to a structure, i.e., a home or building and (2) damaged contents, i.e., personal property or business personal property.1 Fortunately, there is … Continue Reading

Depreciation Should Not Be Taken for Partial Losses That Are To Be Repaired

My presentation at NAPIA’s Annual Meeting was titled, "The Legal, Ethical, and Practical Adjustment Issues from Windstorm Claims to Walls, Windows and Roofs." I asked three others, New York attorney Jonathan Wilkofsky, New York public adjuster Ron Papa, and Maryland public adjuster Randy Goodman, to participate as an expert panel on these adjustment issues. I … Continue Reading

When Calculating Insurance Payments, Take the Deductible From the Repair Value and Not the Policy Limits

One wrongful adjustment method that occurs from time to time is the practice of taking the deductible from the policy limit. For insurers, this is a way to never pay the policy limit. When this occurs, the underwriter essentially charges unearned premium for the amount of the deductible, and the policyholder never has a chance … Continue Reading

Do Not Take Depreciation to Determine Actual Cash Value of Partial Loss to Real Real Property in Texas

I am certain some insurance Texas adjusters are going to be surprised to learn that Texas case law has held that when a partial loss happens, depreciation SHOULD NOT be deducted from the loss. I mention this due to the hundreds of loss statements prepared by insurance company representatives where depreciation is routinely deducted.… Continue Reading