The concept of “betterment” is not always an accurate measure of the true value of a structure. It is, however, a logical concept that can be calculated to an almost exact amount. Every dwelling, depending on materials and quality of construction, every component part of a dwelling, every piece of personal property, has a finite life span. It was reasoned that if a percentage of the life span has elapsed, it would be fair and reasonable in computing actual cash value, to simply subtract from replacement cost that percentage of the replacement cost that had already been expended by use. It is a logical method that a property owner and insured can understand. Replacement cost less depreciation have become widely accepted in California as a means of determining actual cash value.
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