{ "@context": "https://schema.org", "@type": "DefinedTerm", "name": "Depreciation", "description": "Depreciation is the reduction in an item's value over time due to age and wear. On actual cash value claims, the depreciation amount is subtracted from what the carrier pays you.", "inDefinedTermSet": { "@type": "DefinedTermSet", "name": "Insurance Terms Glossary", "url": "https://olivecover.com/insurance-terms" } }
Olive Cover
AboutFree Coverage Review
General

Depreciation

Depreciation is the reduction in an item's value over time due to age and wear. On actual cash value claims, the depreciation amount is subtracted from what the carrier pays you.

The reduction in value of an item over time due to age and wear. On ACV claims it is subtracted from what the carrier pays. Example: a fifteen-year-old asphalt roof has roughly 75 percent depreciation. A $20,000 hail repair on an ACV roof policy might pay only $5,000 after depreciation, leaving you to fund the rest.