MANAGEMENT

Detailed explanation-1: -What is Depreciation in Insurance Claims? Your dwelling and most of its contents – such as your roof, laptop, and furniture – may lose value over time due to factors such as age and wear and tear. This loss in value is commonly known as depreciation.

Detailed explanation-2: -Recoverable Depreciation is the gap between replacement cost and Actual Cash Value (ACV). You can recover this gap by providing proof that shows the repair or replacement is complete or contracted.

Detailed explanation-3: -What Is Actual Cash Value? After a loss, actual cash value (ACV) coverage pays you what your property is worth today. Actual cash value is calculated by taking what it would cost to buy your property new today, and subtracting depreciation for factors such as age, condition and obsolescence.

Detailed explanation-4: -If depreciation is recoverable in the policy, the owner may claim those costs as well as the cash value of the possessions that were destroyed or damaged. Together, cash value plus recoverable depreciation should equal the cost of replacing the item.