Insurance 101 – Chapter 9 – Volume 56 – Betterment


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.

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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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.


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