ACV Roof Claims –
The Depreciation Debate on Labor
Determining the actual cash value (ACV) of a damaged roof is a crucial step in settling insurance claims. A key component of this calculation is depreciation, which accounts for the decrease in value of the roof due to age and wear. However, a growing debate surrounds the question of what gets depreciated: materials only, or both materials and labor? This paper explores the current landscape of regulations and court rulings regarding depreciation of labor in ACV roof policies.
We will analyze how court decisions across the country are shaping the interpretation of policy language and delve into the guidelines set by insurance departments. This analysis is aimed at helping you develop a comprehensive understanding of the complexities surrounding labor vs. material depreciation, so that you can make informed decisions for your company.
Author
Lorie Graham
Senior Vice President & Chief Risk Officer • Corporate Services