Does depreciation apply to a claim if you have Replacement Cost Coverage?

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yes - you are given the depreciated amount up front - you need to make replacement and spend above the depreciated amount to make a supplementary claim for the actual replacement cost amount. this protects the insurer from overpaying the claim
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How does depreciation affect the cost of capital?

Depreciation's Affect On Cost of Capital . Please refer to the following Web site for a complete explanation on how depreciation affects the cost of capital:\n. \n

Your mortgage company wants you to insure for the value of the loan but you think insurance should only cover the replacement cost of the structure what is the minimum coverage required?

You have to have it insured for at least the amount of mortgage. That is the mortgage companies "insurance" that it will be paid for if it is totally destroyed. Answer If you agreed to insure your house for the amount of the mortgage when you obtained your mortgage then you are bound by that agre ( Full Answer )

If you own your home and have no mortgage against it should you be given a depreciation value on damages to your home after a hurricane even if you have cost replacement in your policy?

Answer . \nGenerally, most insurance policies that afford "Replacement cost coverage" will only pay the depreciated value (or "actual cash value") up front until the repairs or replacement actually takes place. In the event you will not repair or replace the home where it stood, you would only b ( Full Answer )

Can an insurance co charge depreciation on a Hail Comp Claim?

Answer . Yes.. Answer . If they are writing the vehicle off as "totalled", yes. If it's home damage and, for example, they're saying that the roof has been used for a certain number of years and that it's half "used up", they only have to pay for the amount of the roof life that was lost. Tha ( Full Answer )

Why is tail coverage in a claims made policy important?

Answer . \nClaims made policies must have an occurrence occur and be reported to the carrier within the policy period. The tail protects against claims made subsequent to the effective termination date of the occurring policy period.

Why do you apply depreciation to assets in a business?

Answer \n. \nWhen we use asset in business due to general usage it bears some wear and tear. Eventually it will be completely destroyed or it will complete its useful life (e.g. due to technology improvements). So rather than write the asset off from the balance sheet in the final year we divide ( Full Answer )

Is depreciation a fixed cost?

Yes it is a fixed cost. Reason being that a fixed cost remains unchanged in total as the level of activity increases or decreases. Example of fixed costs include depreciation of plant and equipment, cost of council rates and rent.

How do you treat depreciation in relevant costing?

Depreciation is a sunk cost . Depreciation is a sunk cost, so you should ignore it in relevatnt costing. you shoud be asking yourself the following question: can I avoid depreciations once I have bought the asset? You should always ignore deprecition when answering a relevant costing questions. Y ( Full Answer )

How do you get total replacement cost on home insurance claim?

It depends on the policy you have with the insurance company. Replacement cost phrasing should include 20% or so over the value of the home. Closely question the agent about the contents--like cabinets, appliances, fixtures and so on should the home become a total loss.

Cost of tail coverage?

The cost of tail coverage is typically around $200.00 monthly. Fora medical practice that has been around for a long time it willusually cost about $50,000 all together for tail coverage.

In what way is the concept of consistency applies to depreciation?

Consistency is a concept used when applying accounting methods to a business, the business must continue to use that particular method. For an example if a company is charging depreciation using the straight line method, they must stick with the straight line method. According to this concept ( Full Answer )

Can you get homeowners full replacement coverage up to a specified amount IE 500000 even if the actual replacement cost is 6500000?

If you can support that your home's true replacement cost is $500,000 instead of $650,000 - which is different from market value OR tax value, your insurance company will probably reduce the amount of coverage at your written request. However, if you owe more than $500,000 your mortgage company may ( Full Answer )

How do I Collect the depreciation from Homeowners insurance claim?

If you want to collect the depreciation your insurance company withheld from your claim payment you must make the repairs to your home. After you make the repairs contact your insurance company and they should issue a check for the depreciation.

What is depreciation cost?

Depreciation is that amount orpart of full cost of fixed asset which is allocated to specific fiscal yearduring which any asset is used to generate revenue.

Is maternity coverage worth the cost?

If maternity coverage comes with your plan, its worth the cost. If you can only get maternity coverage through a maternity rider, it is likely not worth the cost. You would be better off using a health savings account.

Is depreciation fixed cost?

Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.

Is depreciation a direct or indirect cost?

Depreciation can be either a direct cost or an indirect cost, or it can be both direct and indirect. Let's illustrate this with the depreciation of a machine used in Department 23 of a manufacturer. The depreciation on that machine is a direct cost for Department 23 . It is direct because it is tr ( Full Answer )

Does a deductible apply to replacement cost insurance?

Yes. Under some circumstances the insurance company would "absorb" the deductible if the claim for that particular line of coverage exceeded that policy limit. Also, there are some policies out there that do not have a deductible if it is "scheduled personal property", e.g. Rolex Watch, Musical Inst ( Full Answer )

Depreciation a product cost?

In the US, the answer depends on what depreciable assets you are talking about. Depreciation on any depreciable asset that is directly used in the production of goods is part of Manufacturing Overhead , and therefore is a product cost, which is included in the calculation of the value of both ( Full Answer )

Accident claim more than your coverage?

Not a good situation to be in. If the claim is more than the provided coverage, you are still liable, however, when your insurance co. settles if they execute a Release of all claims, relieving you from liability, you should in a good shape.

What is depreciated value in an insurance claim?

Depreciated value is usually called actual cash value on an insurance policy. This takes a formula based on the type of item that you are claiming and devalues it by a certain percentage every year. If an item is older then it will not have very much value. I would always want replacement cost cover ( Full Answer )

Is depreciation cost relevant in Outsourcing?

Only the total amount of a new machine is a relevant cost becausethis incurs in the future and incurs when a certain decision ismade. The depreciation of old machines is a sunk cost so this is anunavoidable cost. The amount for the old machine you sell is arelevant cost because you will get this amo ( Full Answer )

What is the best health coverage for the cost?

I think health insurance varies drastically. It would depend on if it is family or individual and what you wish to have covered by that ins. To best decide for you I would call around getting quotes and deciding your best option. Often when using same company as your car or home ins. you will get a ( Full Answer )

What does Break Down Coverage cost in Florida?

Break Down Coverage in Florida varies from company to company. Depending on the make of car and extent of deductible, variuos companies can offer competitive rates. Check out Geico, AAA and USAA.

Can state farm drop coverage in the middle of a claim?

Yes there are many reasons your policy could be cancelled whether or not you have a claim pending, such as when we fail to make premium payments or certain other factors such as DUI, DWI or claims that result from concealment or fraud that may render you no longer eligible for the insurance program ( Full Answer )

Is depreciation direct cost?

Only depreciation for all those fixed assets whichdirectly involve in manufacturing of production volume is part of direct costwhile all other depreciation is not part of direct cost and included inindirect cost classification.

What is the cost of full coverage car insurance?

Full coverage for car insurance usually depends on where you live, what kind of car you drive, your age and how far you plan to travel. Typically figure about 800 dollars a year.

What can affect the cost of home insurance coverage?

Some of the factors that go into the cost of home insurance are: location, inside city/outside city, brick / frame / masonry construction type, distance to fire department, distance to fire hydrant, city's fire protection class, amount of coverage, deductible on policy desired, ACV or RC (actual cas ( Full Answer )

What is replacement value coverage?

This is defined as the cost to repair without regard to depreciation. All the homeowners policies that I have seen have a cap of 4 time the ACV or the policy limit, whichever is less. When you have a full replacement cost policy you also have the requirement to carry full replacement cost value on y ( Full Answer )