Depreciation and ACV

September 15, 2014

A homeowner has a replacement cost policy for the dwelling but has an ACV endorsement for the roof. The roofing material that is currently installed is not allowed per local building code to be installed. A synthetic material is available and allowed and meets like kind and quality specifications. How do you calculate the depreciation but then properly account for the increased cost of construction costs?

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis