Property Loss/akos Where Are You?

[Mike Bogges]

We have a client that bought an older commercial building on September 11, 2003. Unfortunately there was a fire loss due to some defective refridgerator and some damage resulted.

The claims adjuster is using the ACV to adjust the claim as the insured did not purchase replacement cost. The depreciation percentage on the various pieces of property is between 25%-40%, which seems excessive to the producer and the client.

We are amicable to 5% depreciation given that the Fair Market Value was established at the time of purchase(Our Opinion). We approached the claims adjuster on the appeal and they denied the request for lower depreciation percentages.

Any ideas to help us have our client made whole would be appreciated.