Money & Pricing
Depreciation
The drop in value an item takes from age, wear, and condition. Insurers apply depreciation to calculate actual cash value, and on replacement-cost policies they may hold back the depreciated portion until the repair is done. The age and state of the damaged material decide how much depreciation applies.
Common questions
What does "Depreciation" mean in Xactimate estimating?
The drop in value an item takes from age, wear, and condition. Insurers apply depreciation to calculate actual cash value, and on replacement-cost policies they may hold back the depreciated portion until the repair is done. The age and state of the damaged material decide how much depreciation applies.
Where does "Depreciation" show up in a claim?
The term matters on estimates and scopes across the insurance restoration workflow. Browse the glossary for related terms.
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