I have a question concerning depreciation. From what I am seeing, insurance carriers are using a 15-year lifespan for a roof. How is this a reasonable length of the useable life expectancy of a roof when the shingle manufacturer is providing a 50-year warranty on architectural style shingles? The depreciation should be based on a 50-year life expectancy if the manufacturer is stating that the shingles should last that long I would think? A 35-year difference in opinion in how long a roof should last is a huge difference! Especially when it comes down to the insured that is carrying an ACV policy. The difference in the depreciation amount withheld would be astronomical!
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
ACV is with depreciation deducted. RCV is before depreciation.
Depreciation is deducted from the RCV and you come up with ACV.
I have a question concerning depreciation. From what I am seeing, insurance carriers are using a 15-year lifespan for a roof. How is this a reasonable length of the useable life expectancy of a roof when the shingle manufacturer is providing a 50-year warranty on architectural style shingles? The depreciation should be based on a 50-year life expectancy if the manufacturer is stating that the shingles should last that long I would think? A 35-year difference in opinion in how long a roof should last is a huge difference! Especially when it comes down to the insured that is carrying an ACV policy. The difference in the depreciation amount withheld would be astronomical!