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
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