Betterment

Rather than “depreciation,” experienced adjusters prefer to refer to the sum deducted  from the full replacement cost as “betterment.” The concept of “betterment” is easier to  explain to a lay person. Most insureds understand that payment of replacement cost  betters the insured’s property by replacing old with new. The concept of physical  depreciation is more difficult to explain.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

Legal Disclaimer

The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.