Does depreciation apply to a claim if you have Replacement Cost Coverage?
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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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. \nhttp://en.wikipedia.org/wiki/Depreciation
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…ement and will have no choice but to comply. Actually, the purpose of homeowner's insurance is not to insure the loan, it's to insure the property. You cannot purchase more than the replacement cost of the house. In the event of a total loss, you will only be paid the cost to replace the house up to the limit shown in the declarations, regardless of what the loan amount is. It is against the law for a mortgage company to require you to secure insurance for the value of the loan. They can be fined. ( 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…e entitled to the actual cash value. Otherwise, they will pay the difference between the ACV and actual replacement cost (less your deductible) only after the repairs are complete. Most policies have a time limit on how long you have to make a claim for the replacement cost.....usually 6 months! ( Full Answer )
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…t's depreciation. ( Full Answer )
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.
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 …the cost of the asset by the number of years in which we expect to use it (to find the annual depreciation charge) and allocate the charge to all years in which we use the asset. This process is called depreciation. We use depreciation because the asset is used for earning income. That's why the average value of the asset should be allocated to all those years in which it is used. If we don't distribute the cost to all years then profit will be higher than it really was and when in the last year of asset the asset is written off we would get less profit than was actually earned. This is not in accordance with accounting principles. . Also to reflect the expenses that went into production to produce the end result. . A piece of asset is bought and are broken down into segments as if each is a stand alone unit that contributed to your end result. Depreciate. Think of it as regular business expense that don't get used up in one go. . ( Full Answer )
If you got auto insurance coverage and were in an accident the same day what is the coverage for a claim?
Accidents . Insurance is VERY specific when it comes to when coverage starts. If you had the accident BEFORE you got insurance any damage sustained before you purchased the policy damage would not be covered. If you had an accident after the purchase of the policy then any damages would be cove…red. ( Full Answer )
Answer . Now try in proper English.. The deductible is not a payment. That is in essence what you pay before the insurance co pays. In other words, if the loss is $1000 and you have a deductible of $300 you will only get a claim check for $700
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.
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…ou have already incurred the cost of the asset and as a result you can not avoid deprecition, that is why it is a sunk cost.. Peace Tshepo ( Full Answer )
Your contractor's insurance company - damage was their fault - wants you to settle damages at depreciated value - ACV. Aren't you entitled to full replacement cost -RCV- because it wasn't your fault?
See if your insurance company will help you resolve the claim. The contractor should definitely make things right.
Most (not all) dwelling coverages have an inflation protection on them now, which would rebuild the structure in a total loss, this depends on the form etc. If you policy is an 'actual cash value' settlement, then the amount is determined by the replacement cost (now) less depreciation. If you would… like more assistance, please provide specifics. ( Full Answer )
That depends on the terms of your specific policy. You should read it to find out. . It depends whether the insurance is 'like for like' or 'new for old'. If it's not clear from your policy speak to your insurance company or broker.
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.
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.
No, preexisting conditions do not apply to prescription coverage.This ended in the beginning of 2014 when Obama's health care planwent into works.
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…,whatever accounting practices(whether logical or not) are selected for a given category of transactions,they should be followed from one accounting period to another to achieve compatibility for example:if depreciation is charged according to a particular method it should be followed year after year for the purpose of comparison. Omair shehzad ( 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 …not approve and you may have a bigger problem to deal with. Coordinate with your mortgage company in advance, and ask them to remove the land value from the homeowner's insurance requirement. That said, however, talk with your agent first because some things, like additional living expenses and debris removal - come out of the coverage limit - and you don't want to be underinsured! ( Full Answer )
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.
It lowers your taxable income and therefore lowers your taxes . You are going to have to pay taxes on all depreciation "allowed or allowable" when you sell the property, so you might as well take advantage of it.
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.
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.
There are a number of names for this figure, . Book value . Carrying amount Essentially, it is the amount that your asset is recorded in your books as.
Yes depreciation is fixed cost because it do not vary with the volume of production and remained fixed whether any production or not.
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…aceable to Department 23 without any allocation. The depreciation of this same machine will be an indirect cost of the products manufactured with that machine. It is indirect because the depreciation is allocated to the products. Perhaps the machine in Department 23 has depreciation of $50,000 per year (cost of machine of $500,000 divided by 10 years of useful life). The $50,000 of annual depreciation is then assigned or allocated to products based on the number of hours that products use the machine. For example, if the manufacture expects 20,000 machine hours of use in the current year, then it assigns or allocates $2.50 ($50,000/20,000) per machine hour to each product using the machine. If Product #189 requires one hour of this machine's time, Product #189 will have $2.50 as part of its indirect costs. Indirect manufacturing costs are also referred to as manufacturing overhead, factory overhead, or burden. ( Full Answer )
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…ruments, Oriental Rugs. ( Full Answer )
July 2012 - Just found Loreal Visible Lift. It is a cream in a small jar. The Honey Beige seems about the same as Ultima II Tuscan Beige. It's pretty close.
kavita purchased machinery of rs 5 lak on 1 jan 2007 she also paid instullation charged rs 5o thousand, she sold the machinary 2011 rs 4 lack depreciation is charged at 10 % on 31 dec pass the necessary journal entry under original cost method.
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… inventory and cost of goods sold. So, depreciation on a factory building and factory equipment directly used to manufacture a product are both product costs. Conversely, depreciation on equipment that is NOT directly used in production (e.g., depreciation on office computer equipment) is NOT a product cost. ( Full Answer )
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.
It's a Product cost. Think Selling (Store) and Administrative(Office) cost for period cost. The machines are in the factory.
means loses value over time. Example-your car. it is worth less & less the older it gets.
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…age, this would pay to replace your property at today's prices. ( Full Answer )
depreciation is classed as a fixed cost when using only the straight line method. reducing balancing method is classed as a variable cost.
Yes depreciation of delivery truck is period cost because it is notproduct cost as it is not require to make the units of product.
Depreciation of administrative equipment is period cost because ifproduction is done or not those assets will be depreciated hencecost will be charged as period cost.
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
No. If you had a lapse and a claim occurred during that lapse, then you have no coverage for the loss.
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…unt if you sell the oldmachine and buy the new one. ( Full Answer )
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 …better deal. ( Full Answer )
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.
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 …you had with the company. As for cancelling your policy due to a claim. No, Insurance companies in the U.S. do not cancel your policy simply because you have a claim. Additionally if you've had too many claims that make you no longer eligible for the program or claims resulting from negligence or if the company perceives a moral hazard then your policy could also be non renewed. It's not the same as a cancellation it just mean that they will not renew the policy for another term. Happy Motoring ( Full Answer )
Each insurance company is different and its possible they do. Call your agent or broker to get a better answer.
What is the different between the cost of depreciation of a asset and its related accumulated depreciation?
Cost of depreciation assets and accumulated depreciation is same asaccumulated depreciaton calculates how much depreciation is chargedtill date while remaining is current book value of assets.
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.
The costs of a year of breakdown coverage ranges from as little as 20 dollars to more than 300 dollars. On average a year of breakdown coverage costs ca. $80.
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.
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…h value or replacement cost), your credit rating, age of roof, overall condition of home, past claims history, type of heating & electrical systems, and that's all I can think of right now but there may be more. I hope this helps answer your question. ( Full Answer )
Depreciation is a fixed cost as it does not vary with variation in production volume and even charged when there is no production at all.
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…our policy at 100%. What this means is that if you don't have enough coverage to pay the full replacement cost, then you will be penalized on every claim whether large or small. For this reason, you only want to carry full replacement cost if you are sure that you have enough coverage to avoid the penalty. ( Full Answer )