Re: Depreciation and Betterment in Claim Settlement
Posted: Thu Dec 04, 2008 2:40 pm
Was the property insured on an Actual Cash Value or Replacement Cost basis?
Insurance Forums for the Property Casualty Insurance Industry
https://www.insurancejournal.com/forums/
https://www.insurancejournal.com/forums/viewtopic.php?f=2&t=2467
My understanding in the above situation is that depreciation would not apply in a replacement cost estimate or settlement, but that betterment may in a situation where 'like kind and quality' is no longer available. In this situation the insured could be charged for the 'betterment' portion of the settlementkwongck8831 wrote:Should both betterment and depreciation apply on the replaced machine cost only or
both betterment and depreciation apply on the replaced machine cost and the labour/workmenship incur for the replacement ?