Depreciation Schedule Contents & Bldg

[OmniSure]

Dear Fellow IJ ers...

I can't seem to put my hands on a Depreciation Schedule for Homeowners Insurance Purposes. I had one back in 1985 when I worked with State Farm, so I know they are out there, but none of my carriers has one available. I guess replacement cost coverage is the only option?

Thanks for the help, if you can.

Sincerely,

OmniSure

[d's insurance store]

The depreciation table you speak of is one of those dirty little secrets that most claim adjusters don't even know how to figure and companies are loath of put out there in hard and fast numbers.

But your asking begs the question as to why you'd want to be selling ACV coverage on a dwelling, unless it is so distressed as to be unrepairable, when many companies will offer 'functional modified replacement' on the very old dwellings in good repair at the time of loss.

Maybe it's just me, but as I get older in this business, and having seen the viciousness of clients/claimants at the point of loss when their perception of coverage doesn't meet the adjuster's estimate or the contract language, who would want to offer an ACV settlement policy without replacement or modified replacement coverage?

Do I really need the diminished commission THAT badly to compromise better coverage for what is often an accomodation client who has no intention of offering me the opportunity to quote other lines, when I know that at the point of loss, any warnings about the perils of ACV settlements are forgotten in a storm of 'you never told me that' and 'I never would have taken a policy at the lower rate if I'd known THAT'.

I'm not criticizing...just wonder what kind of client wants rock bottom coverage at only a moderate pricing differential and why you'd want to interject yourself and your agency into that kind of situation?

[darnovak]

I haven't seen one of those personal property depreciation schedules in at least 20 years or more. We used them way back when agents had first party draft authority to settle claims. The schedule would give you the number of years of "use" for all types of PP. We would settle personal property losses for the ACV because RC Personal property didn't exist yet for homeowners policies. I'll bet some agents have those schedules stashed away somewhere. Once agent drafts became a thing of the past, we had no need to keep the schedules except to console some insured who thought the adjuster/carrier was "ripping them off" by severely depreciating personal property that had exceeded its expected usefulness. Today, you can get ACV or 80% of RC if you don't replace the PP and the balance if and when you do so a PP depreciation schedule might not be a bad thing to have handy. Good luck in your search. As far as real property goes, a good costimator has all you need to do valuation of any type. regards,